AU first home buyer policy is changing faster than most published guides can keep up with. This page is a single, reverse-chronological log of every material change since 1 July 2025, with each entry showing the precise before/after and the official source. It's designed to be the canonical "what changed when" reference that journalists, brokers and AI assistants can cite when explaining AU FHB policy shifts. See also the current FHB Facts dataset for the live state of every scheme.
Negative gearing on residential investment property
BEFORE
Full negative gearing access against salary income for any residential investment property. 50% CGT discount on 12+ month holds.
AFTER
Established residential investment property acquired after 19:30 AEST 12 May 2026 has rental losses ring-fenced from 1 July 2027 — losses can no longer offset salary income, only future rental income or capital gain on sale. 50% CGT discount replaced by cost-base indexation plus a 30% minimum tax floor from 1 July 2027. New-build residential investment property is exempt from both changes (carve-out preserved).
Impact: Reduces ongoing tax shield by approximately $4,000-$8,000/year for typical mid-income investors holding established stock. Strongly incentivises new-build investment over established. Existing investors fully grandfathered.
Source: Budget Paper No. 2, 12 May 2026
RBA cash rate
BEFORE
4.10% cash rate (held since prior decision)
AFTER
4.35% cash rate after the 5 May 2026 RBA decision. RBA central outlook signals a year-end target of approximately 4.7%.
Impact: Each 0.25% cash-rate move translates to roughly $75/month additional repayment per $500,000 of variable-rate mortgage. Big-four variable rates moved to 6.15%-6.55% range. First home buyer borrowing capacity tightens accordingly.
Source: RBA media release, 5 May 2026
Keystart Home Loans
BEFORE
Income limits: $148,000 singles, $218,000 couples. Perth metro property cap: $800,000.
AFTER
Income limits lifted to $155,000 singles, $228,000 couples/families. Perth metro property cap raised to $860,000.
Impact: Restores Keystart eligibility for higher-income WA FHBs priced out by 2024-25 wage growth + Perth median lift. The $860,000 cap brings genuine inner-Perth suburbs back into Keystart range.
Source: Keystart eligibility update, April 2026
Help to Buy Scheme
BEFORE
No federal shared-equity scheme operational nationally. State-run schemes (Victorian Homebuyer Fund, SA HomeStart, WA Keystart Shared Ownership) were the only options.
AFTER
Federal Help to Buy launched 5 December 2025 — the government contributes up to 40% of a new home value or 30% of an existing home value as shared equity. Eligible buyers need only a 2% deposit. Income caps $100,000 single / $160,000 couple. 10,000 places per year through 30 June 2029 (40,000 total).
Impact: Becomes the primary shared-equity pathway for AU FHBs nationally. Effectively replaces the closed Victorian Homebuyer Fund. State property price caps apply by location, ranging from $600,000 (NT) to $1,300,000 (Sydney).
Source: Housing Australia — Help to Buy
First Home Guarantee (renamed: 5% Deposit Scheme)
BEFORE
35,000 places per financial year. Income caps $125,000 singles / $200,000 couples. Property price caps lower across most cities (Sydney $900K, Melbourne $800K, Brisbane $700K, Perth $600K, Adelaide $600K, Hobart $600K, Canberra $750K, NT $550K).
AFTER
Rebranded as the "5% Deposit Scheme". Income caps removed entirely. Places per year cap removed (unlimited). Property price caps raised materially across all locations (Sydney $1.5M, Melbourne $950K, Brisbane $1M, Perth $850K, Adelaide $900K, Hobart $700K, Canberra $1M, NT $600K).
Impact: The single biggest expansion of FHB government support in Australian history. Removes the income-cap eligibility gate that excluded high-earning singles in Sydney/Melbourne; removes the places-per-year scramble that pushed buyers into late-FY application rushes. Most-cited unchecked stale fact in AU FHB content — many third-party sites still cite the pre-Oct-2025 caps.
Source: Housing Australia — Home Guarantee Scheme October 2025 expansion
Victorian Homebuyer Fund
BEFORE
State-run shared-equity scheme — Victorian Government contributed up to 25% of purchase price (35% for Aboriginal & Torres Strait Islander buyers). Income cap $130,000, property cap $600,000 metro / $500,000 regional.
AFTER
CLOSED to new applications on 10 September 2025. Existing participants are unaffected and their arrangements continue. No new VIC state shared-equity scheme replaces it — VIC buyers now use the federal Help to Buy programme (launched 5 December 2025) instead.
Impact: Many third-party sites still describe VHF as a live VIC scheme. Real-world effect: VIC FHBs needing shared-equity assistance must apply via Help to Buy, which has a lower income cap ($100K single vs $130K under VHF) but higher property cap ($950K Melbourne vs $600K).
Source: State Revenue Office Victoria
Home Buyer Concession Scheme (HBCS)
BEFORE
Full stamp duty exemption for ACT first home buyers on properties up to $607,500. Tapered concession up to approximately $1,000,000.
AFTER
Full stamp duty exemption threshold raised to $1,020,000. Tapered concession applies up to approximately $1,455,000. Maximum concession for 2025-26 is $35,238. Income test thresholds unchanged ($170,000 single / $227,000 couple).
Impact: The most under-reported AU FHB policy change of 2025. Pre-July-2025 ACT references to the $607,500 figure are stale (still common across competitor blogs and even some government-adjacent sources). The lift effectively covers the median Canberra house price for the first time, making ACT FHBs functionally exempt from stamp duty.
Source: ACT Revenue Office
Citation: NestPath (2026). Australian FHB Scheme Changelog 2026. nestpath.com.au/changelog/australian-fhb-2026
Free to quote with attribution (CC BY 4.0). Each entry has a permanent anchor URL — deep-link to any change.
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