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.

4. Can you use all three together? The stacking rules

4.1 Big picture: do they conflict with each other?

In general, FHBG, FHSS and state concessions don’t directly conflict with each other:

• FHBG is a federal guarantee attached to your loan.
• FHSS is a federal tax and super scheme that releases your own money.
• State concessions are state taxes and grants attached to your property transfer.

The main overlaps are around:

1. First‑home status (you must not have owned property before, with limited exceptions).
2. Owner‑occupier use (each scheme has requirements about moving in and how long you must live there).
3. Timing windows (FHSS contract deadline, FHBG settlement window, state move‑in deadlines).

4.2 Typical stacking for an off‑the‑plan buyer

Here’s how a common stack looks for a Sydney first‑home buyer of an off‑the‑plan apartment:

1. Before contract

   • Start salary‑sacrificing into super under FHSS.
   • Talk to a broker about future FHBG eligibility and price caps.
   • Get initial legal advice on the developer’s contract and sunset date.

2. At contract (off‑the‑plan)

   • Pay a 10% deposit, funded by savings and expected FHSS withdrawal (timing is important – more on this below).
   • Lock in any current NSW first‑home duty concessions based on contract price.

3. During construction

   • Continue building FHSS contributions (if time allows).
   • Keep income, tax and credit files clean so you qualify for FHBG at settlement.

4. Near completion (e.g. 3–4 months out)

   • Apply to the ATO for FHSS release.
   • Work with your broker to obtain formal approval under FHBG.
   • Finalise legal checks and valuation.

5. At settlement

   • FHSS funds arrive in your bank account and are applied to settlement.
   • The lender settles your FHBG‑backed loan.
   • You claim your stamp duty concession/exemption, often via your conveyancer.

As long as you move in within the required time and stay for the minimum period, all three can work together.

4.3 When you can’t stack them

You might not be able to use all three if:

• You exceed the price cap for FHBG or your state’s concession but not both.
• The property is not residential (e.g. serviced apartment, some dual‑key setups, or too small by lender standards).
• You plan to rent it out from day one (rentvesting) and don’t intend to move in at all – this may disqualify FHBG and first‑home concessions, and FHSS requires occupancy.

Rentvestors buying off‑the‑plan should pay particular attention to cashflow and buffers – see the guidance on stress‑testing and buffers in Rentvesting Off‑the‑Plan: Structuring Loans and Ownership.

5. Worked examples: numbers and timelines

5.1 Example 1 – Sydney off‑the‑plan apartment with all three schemes

Scenario

• Buyer: single professional, PAYG, first‑home buyer.
• Target: $800,000 off‑the‑plan apartment in inner‑south Sydney.
• Build time: 24 months.
• Current savings: $40,000.
• FHSS eligible contributions already in super: $20,000.

Without schemes

Assume a lender wants a 20% deposit to avoid LMI.

• Purchase price: $800,000
• 20% deposit: $160,000
• Plus costs (duty, legals): say ~$35,000
• Total cash needed: ~$195,000

This buyer is $155,000 short.

With FHBG + FHSS + NSW first‑home concession (illustrative)

Indicative only, assuming price and date fit current rules.

• Loan under FHBG: 95% LVR, no LMI

  • Deposit required: 5% of $800,000 = $40,000 (which the buyer already has)

• FHSS release: $20,000 (plus earnings, say ~$2,000) = $22,000 into their bank account before settlement.

• Stamp duty concession (NSW): potentially substantial reduction or exemption within threshold (exact amount depends on final rules at contract date).

How it might line up in practice

• At contract (24 months before completion):

  • Pay $40,000 from savings as initial deposit (5%).
  • Negotiate with developer and solicitor so the remaining 5% of the "standard" 10% deposit is payable closer to completion, or funded from future FHSS release.

• During construction:

  • Keep building FHSS contributions, aiming to reach the $22,000 releasable amount.

• 4 months before completion:

  • Apply for FHSS release; funds arrive in 1–2 months.
  • Broker applies for FHBG‑backed loan; lender orders valuation.

• At settlement:

  • FHSS funds top up the deposit and pay legals/adjustments.
  • Duties are reduced under the first‑home concession.
  • Loan settles at ~$760,000 (95% of $800,000), subject to valuation.

5.2 Example 2 – Valuation comes in low at settlement

Same buyer and contract, but at completion the market has softened.

• Final lender valuation: $760,000 instead of $800,000.
• Lender will lend against the lower of contract price or valuation.¹ So they treat it as $760,000.

Under FHBG at 95% LVR:

• Maximum loan: 95% × $760,000 = $722,000
• Minimum total deposit + costs: $800,000 – $722,000 = $78,000 (plus costs)

The buyer has:

• Initial savings used at contract: $40,000
• FHSS funds at settlement: $22,000
• Total: $62,000

They’re now $16,000 short even before costs.

This is where a realistic contingency plan matters:

• Extra savings buffer during construction.
• Family assistance documented properly (see family‑assistance articles in this hub).
• In some cases, negotiating with the developer on price if many valuations are low.

6. Off‑the‑plan vs established: where the schemes differ

You might be deciding between an off‑the‑plan apartment and an established place using the same schemes. Here’s a simple comparison.

6.1 How the schemes behave: off‑the‑plan vs established

For a deeper dive into the broader pros and cons, see Off‑the‑Plan vs Established Homes for First‑Home Buyers: Finance Pros and Cons once that sibling article is published.

7. Quick readiness check: is using all three schemes right for you?

Use this as a 5‑minute self‑diagnostic before you ring your broker.

7.1 Your timeline and lifestyle

• Do you expect to live in the property for at least 2–3 years from completion?
• Are you comfortable committing to a project that may settle 12–36 months from now?
• If your job, relationship or family plans change, would you still be able to move in and meet each scheme’s occupancy requirements?

If your answers are mostly "no" or "not sure", consider whether an established property is a better match.

7.2 Your financial buffers

• Do you have, or can you build, at least 3–6 months of total housing repayments in an offset account by settlement?
• Have you stress‑tested repayments using at least a 3% interest rate buffer, as APRA expects banks to do on serviceability?[1]
• Could you manage if your valuation was 5–10% lower than the contract price at settlement?

If not, re‑size the purchase or extend your timeline. As we note in other off‑the‑plan guides, a solid cash buffer is often more important than chasing the last $10k of grant money.

7.3 Your paperwork and compliance

• Are your tax returns lodged and up to date (critical for FHSS and most lenders, especially self‑employed)?
• Do you have clear records of FHSS‑eligible contributions and a myGov login that works?
• Are there any credit issues (defaults, afterpay, personal loans) that need cleaning up 6–12 months before completion?

If the paperwork is messy, your first job this week is to tidy it up before you sign a contract.

8. State‑by‑state quirks to watch

The detail changes often, so always check your state revenue office and get legal advice. Here are the patterns that matter for off‑the‑plan buyers.

8.1 Common state rules that affect off‑the‑plan

Across most states and territories, you’ll see some mix of:

• A price threshold below which stamp duty is reduced or waived for first‑home buyers.
• Different thresholds or grants for new vs existing properties.
• An occupancy requirement (e.g. move in within 12 months of completion and live there for at least 6–12 months).
• Special off‑the‑plan duty rules where duty is calculated on land/improvements completed or dutiable value at contract date.

8.2 Why the contract date matters more than settlement

Because state duty concessions usually test price and eligibility at the contract date, off‑the‑plan can:

• Protect you if prices rise and thresholds don’t keep up.
• "Freeze" your concession even if the state tightens rules later.

But it also means:

• If you’re just under a threshold now, you must be very careful about variations that increase the contract price later (upgrades, changes in plans) – they can tip you over the limit.

A good conveyancer will explain this before you sign.

9. FHSS and off‑the‑plan: timing traps and workarounds

9.1 The most common mistake

The most frequent FHSS issue we see with off‑the‑plan buyers is assuming you can wait until the last minute to:

• Make contributions, and
• Apply for the FHSS release.

Two timing rules matter:

1. You can only release eligible contributions already made (subject to caps) – you can’t "backdate" them.
2. After your FHSS release is approved, you must sign a contract within 12 months.

9.2 Practical sequencing for off‑the‑plan

A practical approach looks like this:

1. Early in your savings journey
   • Start FHSS contributions 1–3 years before you expect to sign an off‑the‑plan contract.
2. When you’re actively looking
   • Use an FHSS estimate (via myGov) to understand how much you could withdraw.
3. When you’ve chosen a project and contract is imminent
   • Don’t request the FHSS release until you’re confident the contract will proceed within 12 months.
4. When construction is nearing completion
   • Time the release request so the funds arrive a few weeks before settlement, giving the lender confidence you have the cash.

If you need the FHSS funds to pay the initial 10% deposit, timing can be tighter and more complex. In some cases, buyers:

• Negotiate a lower upfront deposit with the developer (e.g. 5% now, 5% later).
• Use short‑term family assistance with clear documentation until FHSS funds arrive.

This is where integrating lending, tax and family‑assistance advice into a single plan really matters, especially if parents are helping.

10. Self‑employed buyers: extra hurdles with FHBG and off‑the‑plan

Self‑employed and small business owners face two extra layers of complexity:

1. Proving consistent, taxable income when lenders apply their own shading and add‑backs.
2. Managing business volatility over the 1–3 years between contract and settlement.

Our separate guide First Home Guarantee for Self‑Employed Buyers: What Really Works goes deep, but the off‑the‑plan‑specific points are:

• Serviceability is reassessed at settlement, not at contract. If your income drops, expenses rise or the business structure changes, you can lose access to the FHBG or be forced onto a smaller loan.
• Lenders often need two full years of financials and tax returns; keep them up to date well before completion.
• Avoid aggressive tax minimisation that crushes your taxable income in the years leading up to settlement – it can kill your borrowing power.

If you’re self‑employed and targeting a project in a specific area (like Green Square, Mascot or Randwick), combine this guide with local finance guides such as Mascot first‑home buyers: practical steps to buy your first place and Practical First‑Home Buying Guide for Green Square and Surrounds.

11. Risk management: buffers, valuations and exit plans

Using three schemes at once makes your numbers look great – on paper. The risk is that a small change can undo the stack.

11.1 The valuation rule you can’t ignore

As explained in Off‑the‑Plan Valuation Change Before Settlement, most lenders will lend against the lower of:

• the contract price, and
• the final valuation.

For a 5% deposit FHBG loan, a 5–10% drop in valuation can effectively double the extra cash you need.

11.2 Simple buffer rule of thumb

While lenders test serviceability at a 3% rate buffer, a practical rule for your own safety is:

• Aim for total housing repayments (including any existing rent or loans that will overlap temporarily) of no more than ~30% of net household income.
• Maintain 3–6 months of those repayments in an offset account by the time you settle.

This aligns with the broader principle that cash buffers and structure often matter more than chasing the lowest rate.

11.3 Exit planning if the project falls over

Off‑the‑plan brings project risk that established property doesn’t:

• If the developer can’t complete and the contract is rescinded under a sunset clause, you may get your deposit back but lose your locked‑in state concession and timing for FHSS/FHBG.
• If that happens, you’ll need to:
  • Re‑assess your FHSS timelines (you might need to recontribute or buy another property within time limits).
  • Recheck FHBG price caps and availability.
  • Confirm whether your first‑home status is still intact for state concessions.

Good legal advice at contract stage is your best protection here.

12. Planning your week: concrete next steps

You can turn this from theory into action within a week. Here’s a simple action plan.

12.1 Day 1–2: Numbers and eligibility

• Use your state’s first‑home buyer calculator to check current duty concessions for your price range.
• Log into myGov and check your FHSS eligible contributions and estimated maximum release.
• Ask a broker for a preliminary borrowing power estimate assuming a 3% rate buffer.

12.2 Day 3–4: Shortlist and structure

• Shortlist 1–3 off‑the‑plan projects that fit:
  • your budget,
  • FHBG price caps, and
  • state first‑home thresholds.
• For each, get from the agent/developer:
  • expected completion date and range,
  • sunset date, and
  • deposit structure (how much, and when).

Compare them in a simple table like this:

12.3 Day 5–7: Professional advice and decision

• Book a short session with:
  • a broker who understands FHBG, FHSS and off‑the‑plan, and
  • a property lawyer/conveyancer experienced with your target area.
• Ask them to map, in writing, for your preferred project:
  • when you’d likely request FHSS release;
  • when your FHBG application would occur;
  • your duty concession and conditions;
  • worst‑case scenarios (valuation drops, delays, income changes).

If you’re targeting inner‑south Sydney, cross‑check your plan with the specific strategies in Green Square Off‑the‑Plan Game Plan for First‑Home Buyers and Avoid These Off‑the‑Plan First‑Home Mistakes in Green Square.

Map all key dates and cashflows before signing an off-the-plan contract.

13. Summary comparison: using each scheme on off‑the‑plan

The table below brings the main points together.

Used thoughtfully, the three schemes can easily make a $50,000–$100,000 difference to your upfront cash requirement and early‑years cashflow. The challenge isn’t eligibility – it’s planning and timing.

Combining federal schemes and state concessions can significantly reduce upfront cash needed.

FAQs

Can I use FHBG and FHSS together on the same off‑the‑plan purchase?

Yes, most first‑home buyers can use FHBG and FHSS on the same property, including off‑the‑plan. FHBG supports your loan with a participating lender, while FHSS releases some of your super contributions into your bank account for the deposit and costs. The key is timing the FHSS release so funds are available before settlement and your FHBG loan can be formally approved.

Do I have to live in my off‑the‑plan apartment to keep the schemes?

Yes, all three schemes have owner‑occupier requirements. FHBG and FHSS require you to move in within a set period (often around six months) and live there for a minimum period. State concessions also usually require you to move in within 12 months of completion and stay for at least six–12 months. If you plan to rent the property from day one, you may not qualify.

What happens if my off‑the‑plan valuation is lower than the contract price?

Most lenders lend against the lower of the contract price and the final valuation. If the valuation is lower, your maximum loan may shrink, forcing you to contribute more cash or renegotiate. This can affect your ability to settle under FHBG and may mean your FHSS funds and state concessions are no longer enough. Building cash buffers and having a back‑up plan is critical.

Can I still use FHSS if construction is delayed by more than a year?

Yes, as long as you met the FHSS rules when you requested the release and signed the contract within the required 12‑month period (or approved extension). FHSS is tied to the timing of your contract, not the completion date. However, long delays can affect your loan approval, FHBG eligibility and occupancy plans, so you should review your position with your broker and adviser if major delays occur.

Is it better to use FHBG on an established property instead of off‑the‑plan?

It depends on your priorities. Established properties usually have less valuation and construction risk because settlement happens within 30–90 days and the building already exists. Off‑the‑plan can offer newer stock, warranties and more time to save, but comes with project and timing risk. From a purely risk‑management perspective, FHBG is generally simpler with established properties, but many buyers still choose off‑the‑plan for lifestyle or location reasons.

Can self‑employed buyers access all three schemes with off‑the‑plan?

In principle, yes – self‑employed buyers can use FHBG, FHSS and state concessions if they meet each scheme’s rules. The harder part is proving stable income when settlement may be 1–3 years away. Lenders will closely scrutinise your tax returns, financials and business performance at the time of loan approval, so good tax compliance and realistic income planning are essential.

Do I lose my first‑home status if an off‑the‑plan project collapses?

If your contract is rescinded under a sunset clause and you never take title, you generally haven’t owned a home for first‑home purposes. However, your specific situation and state rules matter, and your FHSS and FHBG timing windows may still be affected. You should get legal and tax advice if a project falls over before assuming you automatically retain first‑home status for all schemes.

Key takeaways

• You can usually combine FHBG, FHSS and state first‑home concessions on an off‑the‑plan purchase, but the timelines and occupancy rules must all line up.
• Off‑the‑plan introduces extra valuation, project and timing risk, so buffers and planning matter more than squeezing every last dollar of grant.
• FHSS works best when you start contributions early, then time the release so funds arrive shortly before settlement.
• FHBG for off‑the‑plan is typically locked in near completion, when lenders can obtain a reliable valuation and settlement date.
• State concessions generally test your eligibility at the contract date, so you effectively lock in today’s rules even if they change later.
• Self‑employed buyers need to pay special attention to tax returns, income stability and serviceability in the years between contract and settlement.
• A realistic plan includes valuation downside scenarios, clear family‑assistance documentation where relevant, and 3–6 months of repayments in cash buffers.

If you’re weighing up an off‑the‑plan purchase and want a single, integrated view of your tax, super and lending options, consider a short strategy session. Book a free 15‑minute call at /contact and we’ll map your FHBG, FHSS and state concession options against real projects you’re considering – one conversation covering your tax, your loan and your super.

General advice only.