Tax time isn’t exactly the most exciting time of year, but if you’re saving to build your first home, that refund sitting in your bank account might be more useful than you think.
For a lot of first home buyers in Perth, the deposit feels like the biggest hurdle. But when you combine a decent tax return with the grants, schemes, and concessions available in WA right now, the gap between “saving” and “building” might be a lot smaller than you realise.
How Much Deposit Do You Actually Need?
This is where most people overestimate what’s required. You don’t necessarily need a 20% deposit to start building. Right now, there are two main low-deposit pathways for first home buyers and they work quite differently.
Option 1: First Home Guarantee (5% Deposit, No LMI)
Under the First Home Guarantee (previously the Home Guarantee Scheme), eligible first home buyers can build with just a 5% deposit and skip Lenders Mortgage Insurance (LMI) entirely. The government guarantees the remaining 15% to your lender but doesn’t take any ownership in your home.
On a $750,000 house and land package, that’s:
- 5% deposit = $37,500
- LMI saved = approximately $20,000–$25,000
As of the 2026 Federal Budget, there’s no annual cap on the number of places — meaning you won’t miss out because spots filled up before you applied. Income caps are $125,000 for singles and $200,000 for couples. The property price cap for Perth is $850,000, so a $750K build is comfortably within range.
https://firsthomebuyers.gov.au/
Option 2: Help to Buy (2% Deposit, Shared Equity)
Launched in December 2025, Help to Buy is the government’s shared equity scheme. It lets eligible first home buyers purchase with as little as a 2% deposit, with the government contributing up to 40% of the purchase price for a new home.
On a $750,000 new build, that could look like:
- 2% deposit = $15,000
- Government equity share (up to 40%) = up to $300,000
- Your mortgage = as low as $435,000
The trade-off? The government owns a share of your home and participates in future gains and losses. When you sell, refinance, or your income rises significantly, you’ll need to buy back their share at market value.
Income caps are $103,000 for singles and $165,000 for couples (indexed from 1 July 2026). The Perth property price cap is $850,000. Places are limited to 10,000 per year nationally, and currently only two lenders participate (CBA and Bank Australia), with more expected to join.
More info: Australian Government Help to Buy Scheme
Which one’s right for you? The First Home Guarantee gives you full ownership from day one with a slightly higher deposit. Help to Buy gets you in with less upfront but comes with a shared equity arrangement. Both are worth understanding and a good mortgage broker can help you figure out which pathway suits your situation.
Stack It With the First Home Owner Grant
If you’re building a new home in WA, you may also be eligible for the First Home Owner Grant (FHOG), a one-off $10,000 payment from the WA Government.
As of 7 May 2026, the property cap has been increased from $750,000 to $800,000 so a $750K build now sits comfortably within the threshold rather than right at the edge.
Key eligibility points:
- Must be building or buying a brand-new home (not established)
- Total value of home and land must not exceed $800,000 (south of the 26th parallel)
- Must be an Australian citizen or permanent resident
- Must move in within 12 months and live there for at least 6 continuous months
More info: First Home Owner Grant WA
Stamp Duty Savings Just Got Better
The WA Government’s 2026–27 State Budget (announced 7 May 2026) increased stamp duty thresholds across the board for first home buyers.
For vacant land:
- Full exemption — land valued up to $450,000 (was $350,000)
- Concessional rate — land valued between $450,001 and $550,000 (was $350,001–$450,000)
Why this matters for builders: If you’re purchasing a house and land package with separate contracts (one for land, one for the build), transfer duty is generally assessed on the land value only and not the total build cost. So if your land is valued at $450,000 or under, you could pay zero stamp duty as a first home buyer, even on a $750K total package.
That’s a saving that most people don’t realise is available, and it’s one of the biggest advantages of building new over buying established.
More info: Duties Fact Sheet – First Home Owner Rate
Use Your Super to Save Smarter
The First Home Super Saver Scheme (FHSSS) lets you save for your deposit inside your super fund, where voluntary contributions are taxed at just 15% instead of your marginal tax rate.
How it works:
- Make voluntary contributions (salary sacrifice or after-tax top-ups) up to $15,000 per financial year
- Withdraw up to $50,000 per person (or $100,000 for couples) when you’re ready to buy
- You keep more of your money thanks to the lower tax rate
For example, if you’re earning $90,000 and salary sacrifice $10,000 into super, that money is taxed at 15% instead of your marginal rate of 32.5%, saving you around $1,750 in tax per year. Over a few years, that adds up fast.
More info: First home super saver scheme
The $750K Example
Here’s what a first home buyer building a $750,000 house and land package in Perth could look like when you stack everything together.
Using the First Home Guarantee pathway:
- Total build cost (house + land) — $750,000
- 5% deposit required — $37,500
- Less FHOG — $10,000
- Deposit you need to save — $27,500
- LMI (waived under FHG) — $0
- Stamp duty (land valued ≤$450K, FHB exemption) — $0
Using the Help to Buy pathway:
- Total build cost (house + land) — $750,000
- 2% deposit required — $15,000
- Less FHOG — $10,000
- Deposit you need to save — $5,000
- Government equity share (up to 40%) — up to $300,000
- Your mortgage — as low as $435,000
- Stamp duty (land valued ≤$450K, FHB exemption) — $0
Now imagine putting a $4,000–$6,000 tax return toward either of those targets. On the Help to Buy pathway, that single refund could nearly cover your entire deposit. On the First Home Guarantee pathway, it takes a meaningful chunk out of the $27,500.
A Few Things to Keep in Mind
- Help to Buy has limited places — 10,000 nationally per year, allocated first-come first-served. If this pathway interests you, don’t wait.
- Help to Buy currently has only two participating lenders (CBA and Bank Australia). More are expected to join, but your product and rate options are limited for now.
- FHSSS withdrawals take time — you’ll need to apply through the ATO before you sign a contract, and it can take a few weeks for funds to be released. Plan your timeline accordingly.
- The FHOG is for new homes only — buying an established property won’t qualify, which is another reason building new is worth considering.
- Negative gearing changes are coming — from 1 July 2027, negative gearing will be restricted to new builds only. While this primarily affects investors, it may increase demand for new builds and support property values in the medium term.
- Eligibility rules apply across all schemes — always confirm your situation with a qualified mortgage broker or financial adviser before making decisions.
This blog is general information only and should not be taken as financial advice. Schemes, thresholds, and eligibility criteria can change. Always check directly with the relevant government bodies or speak to a licensed professional. Information current as of August 2026.
How Emily Rose Homes Can Help
We’re not financial advisers, but we are building consultants who work with first home buyers every day. We know how these schemes interact with the build process, and we work alongside trusted finance brokers who can help you structure everything properly.
Whether you’re still saving or ready to go, we can help you find the right house and land package within the right price range so you don’t accidentally price yourself out of a grant or concession.
Ready to see what’s possible? Get in touch with our team today.
