2022 Budget breakdown for first home buyers
Housing
- The First Home Guarantee Scheme (formerly the ‘First Home Loan Deposit Scheme’) will expand to offer 35,000 places each year (up from 10,000), allowing First Home Buyers to purchase a new or existing home with a 5 per cent deposit.
- The First Home Guarantee Scheme was extended due to escalating property prices and is only open to owner occupiers.
- Singles earning less than $125,000 and couples with a combined income of less than $200,000 may be eligible.
- Successful applicants to the Scheme will also be exempt from paying mandatory Lenders Mortgage Insurance (LMI).
- Single parents may apply for the Scheme with a deposit of as little as 2 per cent to buy a first home or re-enter the property market.
- Additionally, the government’s new Regional First Home Buyer Support Scheme (RFHBSS) will provide up to 10,000 places each year to help home buyers (including non-first and permanent residents) to purchase or build a new home in regional areas from 1 October 2022.
- The RFHBSS benefits residents of far north Queensland, which is classified as ‘regional’.
First Home Guarantee Property Price Caps
| State or territory | Capital city and regional centres | Rest of state |
| NSW | $800,000 | $600,000 |
| Victoria | $700,000 | $500,000 |
| Queensland | $600,000 | $450,000 |
| Western Australia | $500,000 | $400,000 |
| South Australia | $500,000 | $350,000 |
| Tasmania | $500,000 | $400,000 |
| Australian Capital Territory | $500,000 | – |
| Northern Territory | $500,000 | – |
Regional First Home Buyer Support Scheme Property Price Caps
| Eligible region | Property price cap | Max. Lenders Mortgage Insurance Saving |
| QLD – Gold and Sunshine Coast | $600,000 | $23,954 |
| QLD – Other | $450,000 | $13,384 |
| NSW – Illawarra, Central Coast and Newcastle | $800,000 | $31,939 |
| NSW – Other | $600,000 | $23,954 |
| VIC – Geelong | $700,000 | $27,946 |
| VIC – Other | $500,000 | $14,871 |
| WA | $400,000 | $11,897 |
| TAS | $400,000 | $11,897 |
| SA | $350,000 | $10,410 |
| NT | $500,000 | $14,871 |
Tax Cuts
- Australia’s fuel excise tax has been temporarily reduced by 22.1 cents per litre until 28 September 2022.
- Car owners can expect to benefit from the reduced tax at service stations this week (or as soon as supplies are replenished).
- The RBA cash rate is projected to rise from next month as a result of the reduced fuel excise tax, which will increase the cost of a home loan and marginally reduce borrowing capacity.
- More than 10 million tax-payers will receive tax relief when they submit their FY22 tax returns:
- those earning a taxable income up to $37,000 will receive up to $675 relief;
- those earning a taxable income from $37,001 to $48,000 will receive from $675 to $1,500 relief;
- those earning a taxable income from $48,001 to $90,000 will receive $1,500 relief; and
- those earning a taxable income from $90,001 to $125,999 will receive from $420 to $1,500 relief.
Touch base with the team to find out how this affects your personal circumstances.
