First Home Buyer Guarantee Changes: Why Stamp Duty Still Matters
First Home Buyer Guarantee Changes: Why Stamp Duty Still Matters
The Federal Government's announcement to bring forward changes to the First Home Buyer Guarantee (FHBG) to 1 October 2025 has been welcomed by many. With increased property price caps—up to $1 million in Brisbane—this scheme will allow more first-time buyers to purchase with as little as 5% deposit and avoid paying Lenders Mortgage Insurance (LMI).
It’s a positive step in improving access to the property market. However, buyers should proceed with caution.
The Likely Impact on Property Prices
As eligibility widens and the deposit barrier lowers, the scheme is expected to increase buyer demand—particularly in already competitive markets like Brisbane and parts of regional Queensland. When demand spikes and supply remains limited, property prices tend to rise.
For first home buyers, this may lead to paying more for the same type of property than they would have just months earlier.
Stamp Duty Still Applies
A critical point often misunderstood is that while the FHBG helps with deposit and LMI savings, it does not cover stamp duty. In Queensland:
Stamp duty is a state tax, separate from the federal guarantee scheme
Concessions only apply up to a capped purchase price
Once you exceed that threshold, stamp duty applies in full
This means buyers still need to budget separately for what can be a significant upfront cost, often in the tens of thousands of dollars.
Legal Advice is Essential
Before signing a contract, first home buyers should:
Confirm whether they are eligible for any stamp duty concession
Understand what stamp duty will apply based on the purchase price
Ensure appropriate finance and guarantee conditions are included in the contract
These are legal considerations—not just financial ones—and can greatly affect a buyer’s risk and exposure if things go wrong.
How We Help
At Gullickson Lawyers, our property law team assists first home buyers with:
Stamp duty guidance and eligibility checks
Contract reviews and condition drafting
Pre-purchase legal advice to reduce risk
Buying your first home is exciting—but every decision should be made with full knowledge of the legal and financial implications.
📞 Planning to purchase under the new scheme?
Contact us today for trusted legal advice to protect your first property purchase.
Brisbane Office: (07) 3397 9922
Caloundra Office: (07) 5222 4039