Buying a first home in Australia involves more than the purchase price. In addition to the deposit, first home buyers face stamp duty, conveyancing and legal fees, building and pest inspections, and mortgage-related costs such as Lenders Mortgage Insurance if the deposit is below 20%. Government support — including state-based stamp duty exemptions, the First Home Owner Grant, and the federal Home Guarantee Scheme that allows a 5% deposit without LMI — can meaningfully reduce the total cash required at settlement. The outcome varies substantially by state and by whether the buyer chooses a new or established property. This article breaks down the total upfront cost for a first home buyer at the $800,000 purchase level in each Australian jurisdiction for the 2026-27 financial year, combining stamp duty, deposit, FHOG, and ancillary costs. All figures are sourced from the respective state and territory revenue offices, the Australian Taxation Office, and Housing Australia, and are current as at July 2026.
The Four Components of Upfront Cost
Before examining state-by-state totals, it is worth defining the four components that together determine how much cash a first home buyer needs at settlement.
The deposit is the buyer’s equity contribution to the purchase price. Under the federal Home Guarantee Scheme, eligible first home buyers can purchase with a 5% deposit without paying Lenders Mortgage Insurance, subject to property price caps that vary by location. Outside the scheme, a deposit of 20% is typically required to avoid LMI. For an $800,000 purchase, a 5% deposit is $40,000 and a 20% deposit is $160,000.
Stamp duty is the largest variable cost after the deposit. As detailed in previous articles, first home buyer exemptions range from zero duty on homes up to $800,000 in NSW, $1,020,000 in the ACT, and unlimited new homes in Queensland and South Australia, to no concession at all in Victoria above $750,000 and in WA above $700,000. Tasmania’s temporary established home exemption expired on 30 June 2026.
The FHOG is a cash grant paid at settlement that can offset other upfront costs. It ranges from zero in the ACT to $50,000 in the NT, with most states offering $10,000 for eligible new home purchases.
Ancillary costs include conveyancing and legal fees (typically $1,500 to $3,000), building and pest inspections ($500 to $800), mortgage application and valuation fees ($300 to $800), and moving costs. These add approximately $3,000 to $5,000 to the upfront bill and are assumed at $4,000 in the examples below.
State-by-State Total Upfront Cost at $800,000
The following breakdowns assume an $800,000 purchase price, the Home Guarantee 5% deposit of $40,000 where eligible, and $4,000 in ancillary costs. The net cash required at settlement is the deposit plus stamp duty plus ancillary costs, minus the FHOG where applicable.
In New South Wales a first home buyer at $800,000 pays zero stamp duty under the First Home Buyers Assistance Scheme. If purchasing a new home under $600,000 they could also claim the $10,000 FHOG, but at $800,000 the FHOG does not apply. The total upfront cash required is $40,000 deposit plus $4,000 ancillary costs, for a total of $44,000. This is the lowest cash requirement in Australia at this price point alongside the ACT.
In Victoria stamp duty at $800,000 is $43,070 with no first home buyer concession above $750,000. The FHOG of $10,000 applies only to new homes under $750,000 and is not available at this price. The total is $40,000 deposit plus $43,070 stamp duty plus $4,000 ancillary costs, for a total of $87,070. Without the Home Guarantee scheme the deposit alone would be $160,000, pushing total cash needed above $207,000.
In Queensland a first home buyer purchasing a new home at $800,000 pays zero stamp duty under the unlimited new-home exemption and is eligible for the $30,000 FHOG (applicable to new homes under $750,000 — at $800,000 the FHOG does not apply). For a new home the total is $40,000 deposit plus $4,000 ancillary costs, for a total of $44,000. For an established home at $800,000 the concession provides partial relief and the duty payable is approximately $7,000 to $10,000, bringing the total to approximately $51,000 to $54,000.
In Western Australia stamp duty at $800,000 is $32,313 with no first home buyer concession above $700,000 in the metropolitan area. The FHOG of $10,000 is available for new homes with no published upper price limit tied to the grant itself in all cases. The total is $40,000 deposit plus $32,313 stamp duty plus $4,000 ancillary costs minus $10,000 FHOG if eligible, for a total of $66,313 with the grant or $76,313 without it.
In South Australia a first home buyer purchasing a new home at $800,000 pays zero stamp duty under the unlimited new-home exemption. The FHOG of up to $15,000 may apply depending on the specific property and purchase circumstances. The total is $40,000 deposit plus $4,000 ancillary costs minus up to $15,000 FHOG, for a net total as low as $29,000. For an established home the full $38,830 stamp duty applies, producing a total of $82,830.
In Tasmania the temporary established home exemption expired on 30 June 2026. At $800,000 a first home buyer purchasing an established home pays the full $24,247.50 in stamp duty. The FHOG of $10,000 is available for new homes only. For an established home the total is $40,000 deposit plus $24,247.50 stamp duty plus $4,000 ancillary costs, for a total of $68,247.50. For a new home the FHOG reduces this to $58,247.50.
In the ACT stamp duty is zero under the Home Buyer Concession Scheme for properties up to $1,020,000 with the income test removed from 1 July 2026. There is no FHOG. The total is $40,000 deposit plus $4,000 ancillary costs, for a total of $44,000. This matches NSW and Queensland for the lowest cash required at settlement for a first home buyer at $800,000.
In the NT there is no specific first home buyer stamp duty exemption, so the full duty of approximately $38,500 applies. However the HomeGrown Territory Grant of $50,000 applies to first home buyers purchasing a new home with no price cap. For a new home the total is $40,000 deposit plus $38,500 stamp duty plus $4,000 ancillary costs minus the $50,000 grant, for a net total of $32,500. The $50,000 grant more than offsets the stamp duty, leaving the buyer with surplus cash toward the deposit.
Deposit Without the Home Guarantee
First home buyers who do not access the Home Guarantee Scheme and instead provide a 20% deposit of $160,000 face a significantly higher cash requirement. In NSW at $800,000 the total with a 20% deposit rises from $44,000 to $164,000 still a manageable figure with the stamp duty exemption but more than three times the Home Guarantee total. In Victoria with a 20% deposit the total reaches $207,070, making the Home Guarantee scheme particularly valuable in high-stamp-duty states.
The Home Guarantee scheme has annual allocation limits and property price caps that vary by location, and application is through participating lenders. Buyers should check current availability and caps with Housing Australia before relying on the scheme in their budget.
Conveyancing, Inspections, and Other Costs
In addition to the deposit and stamp duty, first home buyers should budget for conveyancing, building and pest inspections, mortgage application fees, and moving costs. These ancillary costs are often underestimated by first-time buyers.
Conveyancing covering contract review, title searches, and settlement typically costs $1,500 to $3,000 depending on the complexity of the transaction and the state. Building and pest inspections cost approximately $500 to $800 and are strongly recommended for established homes and off-the-plan purchases. Mortgage application fees, valuation fees, and establishment fees charged by lenders range from $300 to $800, though many lenders waive some or all of these fees for first home buyer products.
First home buyers should also budget for moving costs, initial utility connections, and home and contents insurance — these are not settlement costs but drain cash in the weeks immediately before and after settlement.
FAQ
Q: What is the cheapest state for a first home buyer at $800,000? A: NSW, Queensland (new home), South Australia (new home), and the ACT all offer zero stamp duty at $800,000 for eligible first home buyers, making the total upfront cost approximately $44,000 with a 5% Home Guarantee deposit. The NT’s $50,000 HomeGrown grant produces the lowest net cash requirement at approximately $32,500 for a new home, though the NT property market differs materially from the mainland capitals.
Q: Can I use the FHOG toward my deposit? A: Yes. In most states the FHOG can be applied toward the deposit, stamp duty, or other settlement costs. Lenders typically recognise the FHOG as part of your contribution when assessing your loan application. The grant is usually paid at settlement through your lender or conveyancer, so it directly reduces the cash you need to bring to settlement.
Q: What happens to my stamp duty if I buy off-the-plan? A: Off-the-plan purchases may benefit from a concessional valuation in some states, where the construction costs incurred after the contract date are deducted from the dutiable value. This can bring a property’s dutiable value below the exemption threshold even when the contract price is higher. The off-the-plan concession is particularly valuable when combined with a first home buyer exemption in Victoria and the ACT.
Q: Is the Home Guarantee Scheme income-tested? A: Yes. The federal Home Guarantee Scheme applies income caps that vary by scheme stream. The First Home Guarantee requires singles to have a taxable income of $125,000 or less in the previous financial year, and couples $200,000 or less combined. These caps are subject to annual review. Check the current thresholds with Housing Australia before applying.
Q: Should I prioritise a larger deposit or stamp duty reduction? A: The financial calculus depends on your state’s stamp duty structure. In Victoria, where stamp duty on $800,000 is $43,070, buying below the $600,000 exemption threshold saves more upfront than any achievable increase in deposit savings over a short period. In NSW and the ACT, where stamp duty is zero at $800,000, the cash can be directed entirely toward the deposit. Run the numbers through your state’s revenue office calculator and discuss the trade-off with your mortgage broker.
Sources
- Housing Australia, First Home Guarantee, housingaustralia.gov.au (2026-27)
- Revenue NSW, First Home Buyers Assistance Scheme, revenue.nsw.gov.au (2026-27)
- State Revenue Office Victoria, First Home Buyer Duty Exemption, sro.vic.gov.au (2026-27)
- Queensland Revenue Office, First Home Concession, qro.qld.gov.au (2026-27)
- ACT Revenue Office, Home Buyer Concession Scheme, revenue.act.gov.au (effective from 1 July 2026)
- Northern Territory Revenue Office, HomeGrown Territory Grant, territoryrevenue.nt.gov.au (2026-27)
This article provides general information only and does not constitute financial, legal, or tax advice. Property purchase costs, grant eligibility, and scheme availability depend on individual circumstances and are subject to legislative change. Consult a licensed conveyancer, a mortgage broker, and the relevant state revenue office before making a purchase decision.