First-home grants. Transfer duty. Foreign-buyer limits. Capital gains tax. Negative gearing. Eight state systems and a changing federal framework—organised in one practical place.
Contract date, citizenship or residency, prior ownership, property type, value and intended occupancy can all change the answer. This hub was checked on 10 August 2026. Always complete the linked government eligibility check before relying on a concession or signing.
PROPERTY · POLICY · PURCHASE
The property changes the pathway.
Dwelling type, location, ownership, transaction date and buyer status can affect approvals, duty, grants and lending policy.
STATE + TERRITORY DESK
One country. Eight different rule books.
Select where you plan to buy. These are concise snapshots of the most relevant first-home grant and duty settings—not an eligibility decision.
RULE CHECK10 AUG 2026
NSW
Current settings checked 10 August 2026
New South Wales
FIRST-HOME GRANT$10,000
First Home Owner Grant for an eligible new home up to $600,000, or a house-and-land/build contract with a combined value up to $750,000.
DUTY SUPPORTExemption to $800,000
Eligible first-home buyers may pay no transfer duty on a new or existing home up to $800,000, with a concession above $800,000 and below $1 million. Different land thresholds apply.
FOREIGN BUYER NOTE
A 9% surcharge purchaser duty may apply to foreign persons, in addition to ordinary duty and any federal approval obligations.
Eligible first-home buyers can purchase with a minimum 5% deposit; eligible single parents or legal guardians may use a minimum 2% deposit. The scheme has no income caps or waitlists and can avoid lenders mortgage insurance, but property price caps and lender assessment still apply.
Applications opened 5 December 2025. Eligible Australian citizens can buy with a minimum 2% deposit while the government contributes up to 30% for an existing home or 40% for a new home. Income, property price and owner-occupier criteria apply.
Eligible buyers can apply to release qualifying voluntary super contributions—up to $15,000 from a financial year and $50,000 in total, plus associated earnings—to help buy a first home. Release and contract timing rules are strict.
Australian residential property rules for foreign persons sit on top of state duties, surcharges and ordinary lending requirements. Citizenship and residency labels used by lenders, revenue offices and the foreign-investment framework are not always identical.
01
Established-home prohibition
From 1 April 2025 to 30 June 2029, foreign investors are generally prohibited from buying established dwellings. Limited exceptions exist and should be confirmed before entering a contract.
02
Prior approval usually required
A foreign person generally needs foreign-investment approval before purchasing Australian residential land. A contract may need an appropriate approval condition.
03
Register and vacancy obligations
Notification to the Register of Foreign Ownership may be required. An annual vacancy fee can apply where a foreign-owned dwelling is not residentially occupied or genuinely available for rent for more than 183 days in a vacancy year.
04
State surcharge is additional
Several states impose foreign purchaser duty surcharges. These are separate from ordinary transfer duty, federal application fees, finance costs and potential land-tax surcharges.
Tax outcomes depend on ownership structure, dates, use, residency and records. The following separates current settings from measures beginning 1 July 2027.
NOW / CURRENT SETTINGS
CGT and rental deductions
Eligible Australian resident individuals can generally access the 50% CGT discount after holding an asset for at least 12 months.
A qualifying main residence may be fully or partly exempt; the six-year absence rule has conditions.
Interest on money borrowed for an income-producing rental property may be deductible, but private redraws and mixed-purpose loans require apportionment.
From 1 January 2025, 15% foreign-resident capital gains withholding applies to all Australian real property sales unless an appropriate clearance certificate or variation is provided.
FROM 1 JULY 2027 / REFORM
CGT discount and negative gearing change
The existing 50% CGT discount is replaced by inflation-based cost-base treatment and a 30% minimum tax rate on relevant capital gains.
The new arrangements apply to gains accruing from 1 July 2027 when eventually realised; special choices apply to eligible new builds.
For established residential property acquired after 7:30pm AEST on 12 May 2026, rental losses generally cannot offset wages or unrelated income from 1 July 2027. They can be quarantined against residential property income and carried forward.
Pre-announcement holdings are grandfathered. Second-stage legislation and detailed definitions were still under consultation when this page was checked.
IMPLEMENTATION STATUS
The first stage is law. Treasury’s second-stage exposure draft consultation opened 3 August 2026 and closes 21 August 2026. Treat detailed edge cases—including the final meaning of a “new residential dwelling”—as unfinished until legislation and ATO guidance are final.
How much is the First Home Owner Grant in Australia?+
There is no single national cash grant. Each state and territory sets its own grant amount, eligible property type, value cap and transaction-date rules. Federal deposit and shared-equity schemes are separate.
Can a foreign buyer purchase an established home in Australia in 2026?+
From 1 April 2025 to 30 June 2029, foreign investors are generally prohibited from purchasing established dwellings, subject to limited exceptions. Approval is usually required before acquiring Australian residential land.
Is stamp duty the same in every Australian state?+
No. Rates, thresholds, first-home concessions, foreign surcharges and property classifications differ across the eight states and territories.
What changes to negative gearing start on 1 July 2027?+
Under the announced reforms, residential losses on established homes acquired after the 12 May 2026 grandfathering time will generally no longer offset wages or unrelated income from 1 July 2027. Detailed second-stage rules are still being finalised.
Is the 50% CGT discount ending?+
From 1 July 2027, the government’s reform replaces the existing discount with inflation-based cost-base treatment and a 30% minimum tax rate on relevant capital gains, with transitional and new-build choices. Obtain tax advice because implementation details and individual outcomes are complex.
IMPORTANT / GENERAL INFORMATION ONLY
This page is educational and does not provide legal, tax, financial or foreign-investment advice, determine eligibility or calculate a final government liability. Rules and implementation details can change. Obtain advice from an appropriately qualified professional and verify the position with the relevant government authority before signing a contract or acting.
READY WHEN YOU ARE
A clearer finance conversation starts here.
Choose a 30-minute phone discovery call online, or send a short enquiry.
