How To Use FHBG, FHSS and State Concessions on Off‑the‑Plan

Buying off‑the‑plan can be a smart way into the market – but when you layer in the First Home Guarantee (FHBG), the First Home Super Saver (FHSS) scheme and state concessions, the rules get complicated fast.

In the first 100 words you need the bottom line: you can usually use FHBG, FHSS and a state first‑home concession together on an off‑the‑plan apartment or townhouse, but only if (1) the property meets price and timing rules, (2) your FHSS withdrawal and loan approval are lined up with settlement, and (3) you actually move in within each scheme’s required period. The contract date, sunset date and settlement window all drive what is and isn’t possible.

This guide is written so a busy person can read it, make decisions this week, and talk to their broker and solicitor with a clear plan.

Lining up FHBG, FHSS and state concessions depends on the contract, construction and settlement dates.

1. Quick answer: can you stack FHBG, FHSS and state concessions off‑the‑plan?

1.1 The short version

For most first‑home buyers of off‑the‑plan apartments or townhouses:

• You can use the First Home Guarantee with an off‑the‑plan contract, if the project meets Housing Australia’s settlement‑timing rules and price caps.
• You can use FHSS savings towards the deposit and costs, as long as you follow the ATO withdrawal steps before settlement.
• You can claim state first‑home stamp duty concessions or grants, provided your contract price and property type fit your state’s rules.
• In many cases you can use all three together, but you must line up the timelines and owner‑occupier conditions.

If you remember one thing: do not sign an off‑the‑plan contract or pay a large deposit until your broker and solicitor have mapped all three schemes against the developer’s timeline in writing.

For a suburb‑specific walkthrough (including Green Square examples and postcode price caps), see:

• Using the First Home Guarantee to Buy Off‑the‑Plan in Green Square
• Green Square Off‑the‑Plan Game Plan for First‑Home Buyers

2. Key schemes in plain English

2.1 First Home Guarantee (FHBG) – what it does and doesn’t do

The First Home Guarantee (part of the Home Guarantee Scheme, administered by Housing Australia) lets eligible first‑home buyers purchase with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI).

Key features (high‑level – always check current rules):

• Minimum deposit: usually 5% genuine savings.
• No LMI: Housing Australia guarantees up to 15% of the property value to the lender.
• Price caps: vary by state and region (e.g. different caps for Sydney vs regional NSW).
• Owner‑occupier: you must move in within a set time (often 6 months) and live there for a minimum period (usually at least 6 months).
• Limited places: capped seats each financial year via participating lenders.

For self‑employed or small business owners, lenders will apply stricter income tests; see First Home Guarantee for Self‑Employed Buyers: What Really Works.

2.2 FHSS – turning super contributions into a deposit

The First Home Super Saver (FHSS) scheme lets you withdraw certain extra contributions you’ve made to super (plus earnings) to use towards your first home.

High‑level rules (always confirm with the ATO):

• You can apply to withdraw up to $50,000 of eligible contributions per person (subject to yearly caps).
• Contributions must be voluntary – salary sacrifice or personal contributions, not compulsory employer SG.
• After your FHSS release is approved, you must:
  • sign a contract to buy or build a home within 12 months (extension possible), and
  • live in it as soon as practicable for at least 6 of the first 12 months.

FHSS doesn’t care whether the property is established or off‑the‑plan – what matters is the contract date and whether you meet the occupancy rule.

2.3 State concessions – different rules in each state

Each state and territory has its own mix of:

• Stamp duty concessions or exemptions for first‑home buyers.
• Cash grants for new builds or off‑the‑plan apartments.
• Price thresholds that decide whether you pay full duty, discounted duty, or none.

The catch with off‑the‑plan is that:

• Some states use special off‑the‑plan duty rules (e.g. calculating duty at the land + construction value at contract date, not final value).
• The contract date usually determines your eligibility, not settlement.

If you’re comparing states or postcodes, also read How State Taxes, Grants and Rules Change Your Property Numbers.

3. How off‑the‑plan changes the rules

Buying an off‑the‑plan apartment or townhouse means you’re:

1. Signing a contract now, often with a 10% deposit.
2. Waiting 12–36 months for completion.
3. Settling later, based on the lender’s valuation and your circumstances at that time.

This delay affects each scheme differently.

3.1 FHBG + off‑the‑plan timing

Housing Australia sets timing rules for how long can pass between your loan date and settlement for off‑the‑plan purchases. Lenders must be satisfied that:

• Settlement is likely to occur within a specified period (typically no more than 90 days after the loan date for standard purchases; off‑the‑plan rules can differ and may require additional evidence or conditions).
• The valuation at or near completion still supports the loan and guarantee.

This usually means:

• You cannot secure an FHBG place years before settlement.
• Instead, your lender seeks the FHBG place when the building is close to completion, once they can set a realistic settlement date and obtain a current valuation.

3.2 FHSS + off‑the‑plan timing

FHSS is anchored around your FHSS release request and the contract date:

• You apply to the ATO for an estimate, then a FHSS release when you’re ready.
• Once the ATO approves your release:
  • you have 12 months to sign a contract.
  • for off‑the‑plan, that contract can be for a property that won’t settle for 1–2 years – that’s okay.
• You can usually request a 12‑month extension if you haven’t signed.

The risk with off‑the‑plan isn’t the contract date – it’s whether settlement is delayed so long that your cashflow or borrowing power changes before you can draw down the loan.

3.3 State concessions + off‑the‑plan timing

Most states:

• Test first‑home eligibility and price caps at the contract date.
• Require you to move in within a set time after completion (e.g. usually 12 months) and live there for a minimum period.

For off‑the‑plan, that means:

• If you’re eligible now, you usually lock in the concession at today’s thresholds, even if prices or rules change before settlement.
• If the project runs beyond its sunset date and your contract is rescinded, you may lose the concession and need to re‑qualify on a new purchase.