91 plain-English definitions for the acronyms, schemes and ratings every Australian buyer and homeowner encounters — FHOG, FHBG, LMI, stamp duty, EER, MEPS, WELS, NMI, BAL and more. Verified against ATO, Treasury, Housing Australia, energyrating.gov.au and state revenue offices.
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Federal and state acronyms — FHOG, FHBG, HGS, FHSS and the rest.
A one-off cash grant paid by state governments to first home buyers building or buying a brand-new home.
The First Home Owner Grant is administered separately by each Australian state and territory, so the amount and eligibility differ. As at May 2026, most states pay $10,000 for a new build or substantially renovated home; established (existing) homes are not eligible for FHOG in any state. The grant is funded by state revenue offices, not the federal government.
A federal scheme letting eligible first home buyers purchase with just a 5% deposit without paying LMI.
Under the First Home Buyer Guarantee (part of the Home Guarantee Scheme run by Housing Australia), the federal government guarantees up to 15% of the property value so you avoid Lenders Mortgage Insurance with a deposit as low as 5%. Income caps apply ($125k single / $200k couple in FY2025–26) and property price caps vary by city and region. Places are capped each financial year.
The federal umbrella programme covering the First Home Buyer Guarantee, Regional FHBG and Family Home Guarantee.
The Home Guarantee Scheme is run by Housing Australia and bundles three separate low-deposit schemes: the First Home Buyer Guarantee (5% deposit), the Regional First Home Buyer Guarantee (regional-area version), and the Family Home Guarantee (2% deposit for single parents and eligible single legal guardians). Each has its own income caps, property price caps and place quotas per financial year.
A tax-advantaged way to save your deposit inside super — release up to $50,000 of voluntary contributions plus earnings.
The First Home Super Saver Scheme lets first home buyers make voluntary super contributions (concessional and non-concessional) and later withdraw them — plus deemed earnings — to put toward a home deposit. As at May 2026, the maximum releasable amount is $50,000 of contributions ($15,000 in any single financial year) plus associated earnings. Contributions are taxed at concessional rates inside super, so most buyers come out ahead of saving in a regular bank account. You must apply to the ATO for a determination and a release authority before signing a contract.
The original name of the First Home Buyer Guarantee — now retired.
The First Home Loan Deposit Scheme was the federal government's original name for what is now called the First Home Buyer Guarantee. The scheme was rebranded in July 2022 when responsibility moved to Housing Australia (formerly NHFIC). If you read 2019–2022 articles referencing FHLDS, they're describing the same mechanism as today's FHBG.
The regional-area variant of FHBG — same 5% deposit benefit, but only for regional postcodes.
The Regional First Home Buyer Guarantee mirrors the standard FHBG but is restricted to applicants who have lived in a regional area for at least 12 months and are buying in that regional area. Property price caps are usually higher than the metro FHBG cap for the same state. Places are allocated separately from FHBG.
A 2%-deposit federal scheme for single parents and single legal guardians with at least one dependent.
The Family Home Guarantee lets eligible single parents and single legal guardians buy a home with just a 2% deposit without paying LMI. Unlike FHBG, the buyer does not need to be a first home buyer — but they must not currently own property. The scheme is part of the federal Home Guarantee Scheme administered by Housing Australia.
The ACT's stamp duty exemption for eligible buyers replaced the old FHOG-style cash grant from 2019.
The ACT Home Buyer Concession Scheme is a stamp duty (conveyance duty) waiver that can reduce duty to zero for eligible buyers. The HBC replaced the ACT's old First Home Owner Grant and applies to both new and established properties — unusual among Australian schemes. Income caps and property value caps apply.
NSW first home buyer stamp duty exemption or concession scheme up to defined value thresholds.
The NSW First Home Buyer Assistance Scheme provides a full exemption from transfer duty (stamp duty) on homes up to $800,000 and a tapered concession on homes between $800,000 and $1,000,000 as at May 2026. Vacant land thresholds are lower. This replaced the old First Home Buyer Choice "annual property tax" option that was scrapped in mid-2024.
The home you live in — the legal classification that unlocks first home buyer concessions and CGT exemption on sale.
Principal Place of Residence (also written PPOR) is the term used by both the ATO and state revenue offices to mean the home you live in. Most first home buyer concessions, the CGT main residence exemption, and several state land tax exemptions require the property to be your principal place of residence — usually for a minimum period (commonly 6 to 12 months after purchase).
The minimum period you must live in a property after settlement to keep a first home buyer concession.
Most state FHB stamp duty concessions, the federal FHBG and the FHOG come with an occupancy requirement — typically 6 to 12 months of continuous residence starting within 12 months of settlement. Failing the occupancy requirement triggers repayment of the concession (and any FHOG already paid). The exact rules differ by state and scheme.
Someone who has never previously owned residential property in Australia (or whose spouse hasn't either).
A first home buyer is generally someone who has never owned residential property in Australia — neither solely nor jointly. Most schemes also disqualify you if your spouse or de facto partner has previously owned property, even if you haven't. Investment property ownership counts; a property you inherited and never lived in usually does not. Each scheme has its own precise definition.
Loan structure terms — LMI, LVR, comparison rate, offset, redraw.
A one-off insurance premium that protects the lender (not you) when your deposit is under 20%.
Lenders Mortgage Insurance is a premium paid by the borrower that insures the lender against loss if the loan goes into default. LMI is typically required when your loan-to-value ratio exceeds 80%. The premium can be tens of thousands of dollars on an average Australian home loan and is usually capitalised into the loan. Avoiding LMI is the main reason buyers use schemes like FHBG or pay a 20% deposit.
The loan amount divided by the property value, expressed as a percentage.
Loan-to-Value Ratio is the size of your mortgage relative to the value of the property — calculated as loan amount ÷ property value × 100. An 80% LVR (which means a 20% deposit) is the threshold most Australian lenders use to decide whether LMI is required. A lower LVR usually unlocks better interest rates because the loan is lower risk for the lender.
The interest rate plus most fees, expressed as a single annualised rate so you can compare loans like-for-like.
The comparison rate is a single percentage that bundles the headline interest rate with most upfront, ongoing and discharge fees into one figure. Australian lenders are legally required (under the National Consumer Credit Protection Act) to publish a comparison rate alongside any advertised interest rate. It assumes a $150,000 loan over 25 years, so it can understate fees on much larger loans. Use it as a comparison aid, not a literal cost figure.
A linked transaction account whose balance reduces the interest charged on your home loan.
An offset account is a regular everyday bank account linked to your mortgage. Every dollar sitting in the offset reduces the loan balance interest is calculated on. A 100% offset means the entire balance reduces interest charged; partial offsets reduce only some of it. Unlike redraw, offset money is fully accessible like any other transaction account and does not affect your loan balance directly.
A loan feature letting you withdraw extra repayments you've made above the minimum.
A redraw facility lets you access additional repayments you've made on your mortgage above the contracted minimum. Unlike an offset account, redrawn funds come from your loan balance and may have tax implications if the original loan was for an investment property. Some lenders charge a redraw fee and impose minimum withdrawal amounts. Redraw is typically available on variable-rate loans only.
A loan repayment that pays down both the loan balance and interest each month.
Principal and Interest is the standard home loan repayment structure where each instalment pays a portion of interest plus a portion of the principal (loan balance). Early in the loan most of the payment is interest; later most of it is principal. P&I is contrasted with Interest-Only loans where the principal is not reduced for the IO period.
A loan structure where you pay only interest for an agreed period — the loan balance does not reduce.
Interest-Only loans require only interest payments for an agreed initial period (commonly 1 to 5 years). The loan balance stays the same for the IO period and reverts to Principal & Interest afterward — usually with a higher repayment because the principal must be repaid over a shorter remaining term. IO is more common on investment loans for tax-deductibility reasons; APRA has tightened IO lending standards since 2017.
An interest rate locked in for an agreed term, usually 1 to 5 years.
A fixed-rate home loan locks the interest rate for a defined period (typically 1, 2, 3 or 5 years) regardless of RBA cash rate movements. After the fixed period ends the loan reverts to a variable rate — often the lender's standard variable rate, which can be much higher than the original fixed rate. Break costs apply if you exit a fixed loan early.
An interest rate that moves up and down based on lender pricing decisions and (indirectly) the RBA cash rate.
A variable-rate home loan has an interest rate that the lender can adjust at any time. Movements are typically (but not always) aligned with RBA cash rate changes. Variable loans usually offer more flexibility — full offset, redraw and unlimited extra repayments — which is why they're often paired with offset accounts to accelerate equity build.
A loan structure with part of the balance on a fixed rate and part on a variable rate.
A split loan divides your mortgage into two (or more) sub-accounts — one fixed and one variable. The fixed portion gives you certainty against rate rises while the variable portion lets you make extra repayments and use offset features. The split ratio is set when you take the loan and can usually be renegotiated at refinance.
A lender's assessment of whether you can afford the loan repayments under stress-test conditions.
Serviceability is the calculation lenders use to decide your maximum loan amount. APRA requires Australian lenders to add a 3% serviceability buffer on top of the actual interest rate when stress-testing applicants — so a 6% headline rate is assessed at 9%. Lenders also haircut bonus income, rental income and casual employment, and apply HEM (Household Expenditure Measure) benchmarks to your declared expenses.
The maximum home loan amount a lender will approve based on your income, expenses and debts.
Borrowing power (sometimes called borrowing capacity) is the maximum loan a lender will offer you after running their serviceability calculation. It depends on income, declared expenses, existing debts, household size, the APRA buffer rate, and the lender's HEM benchmark. Different lenders calculate it differently — borrowing power can vary by $100,000+ between Big-4 banks and specialist lenders for the same applicant.
A lender's conditional indication that they'd lend you up to a certain amount — not a binding commitment.
Pre-approval (also called conditional approval or approval in principle) is a lender's assessment that you likely qualify for a loan up to a stated amount, subject to property valuation and final checks. Pre-approval typically lasts 90 days and may include a credit check that's recorded on your credit file. It is NOT a binding loan offer — final approval depends on the specific property and a satisfactory valuation.
A licensed intermediary who compares loans across multiple lenders on your behalf.
A mortgage broker is a licensed credit-services provider who acts as your intermediary with lenders — typically across a panel of 20 to 60 lenders. Brokers are usually paid commission by the lender, not the borrower, and are subject to a best-interests duty under Australian credit law (since 1 January 2021). They handle the application paperwork, packaging and negotiation.
Savings you've held for at least 3 months that lenders count toward your deposit.
Most Australian lenders require evidence of "genuine savings" — typically 5% of the purchase price held in your name for at least 3 months — before they'll approve a high-LVR loan. Gifts from family, lottery wins and bonuses don't count unless they've sat in your account for the minimum period. FHSS releases are usually accepted as genuine savings by most lenders.
Transfer duty, land tax, CGT and the state-by-state exemptions.
A state-government tax on property transfers — the single biggest upfront cost after the deposit.
Stamp duty (legally called transfer duty in NSW, QLD and TAS) is a tax charged by state and territory governments when property ownership changes hands. The rate is progressive and varies by state — typically around 3% to 5.5% of the purchase price for an average home. First home buyer concessions or exemptions can reduce or eliminate stamp duty entirely depending on the state and property value.
The legal name for stamp duty in NSW, QLD and Tasmania — same tax, modern name.
Transfer duty is the official name for stamp duty in New South Wales, Queensland and Tasmania, where state legislation was modernised. Other states and territories still call it stamp duty or land transfer duty in their legislation. The two terms are functionally identical and either is accepted in everyday conversation.
An annual state tax on the unimproved land value of property you own above a threshold (your home is usually exempt).
Land tax is an annual tax levied by each state and territory (except the NT) on land you own above a state-specific threshold. Your principal place of residence is exempt in every state. Investment properties, holiday homes and commercial property are typically taxable. Thresholds vary widely — NSW exempts the first $1,075,000 of land value (2026); VIC has no tax-free threshold for trusts; QLD has a sliding-scale rate based on total taxable land holdings.
The minimum total taxable land value before annual land tax kicks in — varies by state.
The land tax threshold is the value of taxable land you can own before any land tax is payable. As at FY2025–26: NSW $1,075,000; VIC $50,000 (or $300,000 in trusts before surcharge); QLD $600,000 for individuals; SA $755,000; WA $300,000; TAS $124,999; ACT no threshold (applies to all rentable property). Thresholds typically apply to the aggregated land value across all taxable property you own in that state.
Federal tax on the profit when you sell an asset — your main residence is exempt under the PPR exemption.
Capital Gains Tax is a federal tax administered by the ATO on the profit from selling a CGT asset. Your principal place of residence is fully exempt under the main residence exemption. Investment property is taxable but gets a 50% CGT discount if held for over 12 months (for individuals and trusts, not companies). The "six-year rule" allows former main residences to retain CGT exemption while rented out for up to 6 years.
The CGT exemption when you sell your principal place of residence.
The main residence exemption fully removes capital gains tax on the sale of your principal place of residence, provided the property was your main home for the whole ownership period. Partial exemption applies if the property was your home for only part of the period or was partly used to produce income (e.g. home office, granny flat rented out). The exemption applies per couple, not per person.
A surcharge stamp duty rate of 7-8% applied to non-Australian-resident buyers of residential property.
Foreign Purchaser Additional Duty is a state-level surcharge on top of standard stamp duty for buyers who aren't Australian citizens or permanent residents. As at 2026: NSW 8%, VIC 8%, QLD 8%, SA 7%, WA 7%, ACT 0.75%. Some states also impose a foreign-owner land tax surcharge each year the property is held. FIRB approval is separately required before a foreign buyer can purchase residential property.
The federal body that approves foreign purchases of Australian residential property.
The Foreign Investment Review Board administers Australia's foreign investment framework, including residential property purchases by non-citizens. Most foreign buyers must apply for FIRB approval before signing a contract — applications attract a fee from approximately $14,700 (2026 rates, indexed). Approval is generally restricted to new dwellings or vacant land for development; established homes are usually off-limits.
Goods and Services Tax — generally only applies to brand-new residential property and is usually included in the purchase price.
GST at 10% applies to brand-new residential property (off-the-plan, house-and-land packages and substantially renovated dwellings) but not to established homes. The 1/11th GST component is usually already included in the advertised price. The buyer must withhold and remit the GST directly to the ATO at settlement under the GST property withholding rules introduced in 2018.
The retired alternative-to-stamp-duty annual property tax — scrapped for new buyers from 1 July 2024.
The NSW Property Tax was an opt-in annual property tax (instead of upfront stamp duty) available to first home buyers from January 2023 to June 2024 under the First Home Buyer Choice scheme. The scheme was abolished from 1 July 2024. Buyers who opted in before then keep the annual tax for as long as they own the property. New first home buyers now use the standard FHB Assistance Scheme stamp duty concession.
Cooling-off, exchange, settlement, Section 32, conveyancing.
A short window after signing a private-treaty contract during which the buyer can withdraw with a small penalty.
A cooling-off period is a buyer-protection window that runs from signing the contract. Length varies by state: NSW 5 business days, VIC 3 business days, QLD 5 business days, SA 2 business days, WA generally none, TAS generally none, ACT 5 business days, NT 4 business days. Auctions and contracts signed at auction (or shortly after) usually have no cooling-off. Withdrawing during cooling-off forfeits a small penalty (e.g. 0.25% in NSW) but returns the bulk of the deposit.
The vendor's pre-contract disclosure document mandatory for every Victorian property sale.
A Section 32 Statement (referencing Section 32 of the Victorian Sale of Land Act 1962) is the vendor's statement of disclosure given to buyers before they sign a contract. It must include title information, planning and zoning, easements, building permits, outgoings (rates, owners corporation), and any notices issued against the property. A defective Section 32 can give the buyer grounds to rescind the contract within a defined window after settlement.
The generic name for a seller's pre-contract disclosure — called Section 32 in VIC, Form 1 in SA, etc.
A vendor statement is the seller's legally required pre-contract disclosure document. Each state has its own format and name: Section 32 (VIC), Form 1 (SA), Contract of Sale annexures (NSW, ACT, NT, QLD, TAS, WA). Required disclosures typically include title, encumbrances, easements, zoning, building approvals, owners corporation/strata details and any notices issued by authorities.
The legal document recording the agreement to buy and sell — signed at the start, executed at exchange.
The Contract of Sale (sometimes called the Sale Agreement) is the legally binding document setting out the terms of the property sale — purchase price, deposit, settlement date, inclusions, special conditions and disclosure annexures. Once both parties have signed and contracts are "exchanged," the buyer is committed (subject only to cooling-off and any special conditions like finance or building inspection).
The moment both buyer and seller sign identical contracts and the sale becomes legally binding.
Exchange of contracts is the legal moment a property sale becomes binding. Each party signs an identical copy of the contract; the deposit is paid (usually 10%); and the signed copies are physically or electronically exchanged. After exchange, the buyer is legally committed to the purchase subject only to cooling-off (if applicable) and any conditional clauses (finance, building inspection).
The legal completion of the property sale — usually 30 to 90 days after exchange.
Settlement is the final step where the buyer's funds are transferred to the seller, the balance of the purchase price is paid, the title is transferred, and the buyer takes possession. Most Australian settlements now happen electronically via PEXA, with all parties (buyer, seller, banks, conveyancers) connected to a single workspace. Standard settlement is 30, 42, 60 or 90 days; off-the-plan settlements can run years from contract.
The legal work of transferring property ownership — done by a conveyancer or solicitor.
Conveyancing is the legal process of transferring property ownership from seller to buyer. A licensed conveyancer or solicitor handles contract review, search and disclosure checks, settlement coordination via PEXA, stamp duty payment to the state revenue office, and title registration. Fees typically range from $1,000 to $2,500 for a straightforward residential transaction.
The electronic platform where most Australian property settlements now happen.
PEXA (Property Exchange Australia) is the digital settlement platform used for almost all Australian property transactions today. It coordinates conveyancers, banks and revenue offices in a single online workspace, replacing the old paper-based settlement attended in person at a city office. PEXA settlements complete the title transfer, fund movement and duty payment simultaneously.
A public bidding sale — no cooling-off period and you must have unconditional finance ready.
A property auction is a public bidding sale conducted by a licensed auctioneer. The highest bid above the reserve price wins; if no bid meets the reserve the property is "passed in." Auction purchases have NO cooling-off period in any state — the contract is unconditional the moment the hammer falls. You must have unconditional finance pre-approval and have completed all inspections before bidding.
The most common sale method — a listed asking price and negotiation between buyer and seller.
Private treaty is the standard "for sale" listing format where the seller advertises an asking price and buyers submit offers via the agent. Cooling-off periods apply (varies by state). Buyers can include conditional clauses (subject to finance, subject to building inspection). Most regional and outer-suburb Australian sales are private treaty; auctions are more common in metro Sydney and Melbourne.
When a seller accepts a higher offer from another buyer after verbally agreeing to your offer but before contracts exchange.
Gazumping is the practice of a seller accepting a higher offer from a second buyer after having verbally agreed to sell to the original buyer — possible because no contract is binding until both parties sign and exchange. It's legal but considered unethical, and more common in rising markets. The buyer typically loses any costs already spent on inspections and conveyancing. NSW briefly considered legislating against it in 2017; no state has.
A contract clause letting the buyer pull out if their loan isn't formally approved by a specified date.
A "subject to finance" or "finance approval" clause is a special condition in a Contract of Sale giving the buyer a defined period (typically 14 to 21 days from exchange) to obtain unconditional finance approval. If finance is not secured by the cut-off date, the buyer can withdraw and recover the full deposit. Auction contracts typically do not allow this clause.
A contract clause letting the buyer pull out if a building or pest inspection finds material defects.
A "subject to building and pest inspection" clause gives the buyer a defined window after exchange (commonly 7 to 14 days) to commission a qualified building inspector and pest inspector. If either report finds material defects the buyer can negotiate price reduction, request rectification, or rescind the contract entirely. Auction contracts typically do not allow this clause — inspections must be done before bidding.
Buying a property before it's built — you sign the contract from plans and drawings.
Off-the-plan purchases mean you sign a contract to buy a property (usually an apartment or townhouse) before construction is complete — sometimes years in advance. The deposit is usually 10% paid on signing, with the balance due at settlement when the property is registered. Many states offer stamp duty concessions on off-the-plan purchases. Risk: the finished property may differ from renderings, lenders may revalue lower than your purchase price, and construction delays are common.
Building, pest, strata, bank valuation and what each actually checks.
A qualified inspector's visual report on the structural and visible condition of a property.
A building inspection (also called a pre-purchase building report) is a visual inspection by a qualified building inspector covering structural integrity, roof, walls, floors, plumbing, electrical, drainage and safety hazards. The report is non-invasive — inspectors don't cut into walls or remove fittings. Typical cost is $400 to $800. Most buyers commission one within the cooling-off period or under a "subject to inspection" clause.
A specialised report focused on termite damage and other timber pests.
A pest inspection focuses on signs of termites, borers, fungal decay and other wood-destroying organisms. Many inspectors bundle pest and building inspections into a single report at a discount. Termites cause an estimated $1+ billion of damage annually in Australia, and most home insurance policies exclude termite damage — making pest inspections critical, especially in tropical and subtropical regions.
A review of an apartment building's financial records, levy history, and known defects.
A strata report (also called an owners corporation search or strata records inspection) reviews the building's strata records: special levies raised in the past 5 years, sinking fund balance, by-laws, ongoing disputes, building defects and any major works planned. Essential for any apartment or townhouse purchase. Typical cost is $250 to $400; a poor strata report is one of the few situations where backing out of a high-deposit property purchase is justified.
The lender's independent valuation of the property — often lower than your purchase price.
A bank valuation is a property valuation commissioned by the lender (not the buyer) to confirm the property's value as security for the mortgage. Bank valuations are typically conservative — often 5–10% below the agreed purchase price — because the lender's focus is forced-sale value. A low bank valuation can shrink your loan, requiring a bigger deposit at settlement. The buyer rarely sees the actual valuation report.
A formal property valuation by a Certified Practising Valuer — used for legal, tax or partnership purposes.
A sworn (or full) valuation is prepared by a Certified Practising Valuer (CPV) registered with the Australian Property Institute, and includes a market value figure with comparable sales evidence and detailed inspection. Sworn valuations are typically used for divorce settlements, deceased estates, capital gains assessments, partnership buyouts and stamp duty appeals — not for mortgage purposes (lenders use their own panel valuers).
The difference between the property value and the mortgage owed against it.
Equity is the portion of your property you actually own outright — current property value minus current mortgage balance. As you pay down principal AND if the property appreciates, equity grows. Equity can be borrowed against (refinance/redraw) to fund renovations, an investment property deposit or other large purchases. Lenders generally let you access up to 80% of equity without triggering LMI.
Recent sale prices of similar properties nearby — the primary input for valuations and offers.
Comparable sales (often shortened to "comps") are sale prices of similar properties — same suburb, similar size, similar build, sold in the past 3–6 months. Valuers, real estate agents and buyers all use comps as the primary basis for assessing market value. Online tools like CoreLogic Property Reports, OnTheHouse and PropertyValue aggregate comp data; full RP Data subscriptions give the most comprehensive comparison.
A specialised inspection for asbestos-containing materials — relevant to homes built before 1990.
An asbestos survey identifies asbestos-containing materials in a property — most commonly in eaves, cement sheeting, vinyl floor tiles, roofing and insulation in homes built before 1990. A standard building inspection may flag potential asbestos but does not test or sample it. Removal must be done by a licensed asbestos removalist under state OHS regulations; DIY removal of bonded asbestos under 10 m² is permitted in most states but discouraged.
Freehold, strata, leasehold, easements and what they mean for you.
The standard freehold title system used across Australia — the government guarantees the title.
Torrens Title is Australia's standard land registration system, named after Sir Robert Torrens who introduced it in South Australia in 1858. Under Torrens, the state government maintains a central register and guarantees the title shown on it. Old-system title (deeds-based) survives only in fragments of NSW and VIC. Most modern Australian property is Torrens Title.
Outright ownership of the land and any buildings on it — the most common form of property ownership in Australia.
Freehold (specifically "fee simple" in legal terms) is outright, perpetual ownership of the land and any structures on it. The owner has the right to occupy, modify, sell or pass it on, subject only to government planning controls, easements and council rates. Most Australian houses are freehold. Apartments and townhouses are usually held under strata title — a different form of ownership.
The ownership structure for apartments and townhouses — you own your lot, plus a share of common property.
Strata title divides a building into individually owned "lots" (your apartment or townhouse) plus shared "common property" (lifts, hallways, gardens, roof, walls). All lot owners are members of the Owners Corporation (called a Body Corporate in QLD) which manages common property and levies fees. Strata titles emerged in NSW in 1961 and have become the dominant form of medium and high-density Australian property ownership.
A title structure for housing estates with shared amenities like roads, parks or pools.
Community title is used for housing estates where residents share private roads, parkland, recreation facilities or other amenities. Each lot owner has freehold title to their land but is also a member of a Community Association that manages and pays for the shared assets. Common in master-planned communities, gated estates and large residential developments.
Ownership of a long-term lease (often 99 years) rather than the land itself — the ACT is fully leasehold.
Leasehold means you own a long-term lease (typically 99 years, renewable) over land rather than owning the land outright. The Australian Capital Territory is unique in that ALL ACT land is held under 99-year leasehold from the Commonwealth — so when ACT buyers "buy a house," they're actually buying the lease. Leasehold systems also exist on Commonwealth-managed land elsewhere (e.g. some Norfolk Island and Jervis Bay).
A registered right someone else has to use a strip of your land — usually for services like sewer or drainage.
An easement is a legal right registered on the title for another party (a neighbour, council, utility or government) to use part of your land for a specific purpose — most commonly sewer mains, stormwater, electricity supply, or right-of-way access. Easements run with the land, so they transfer to every new owner. Building over an easement usually requires the easement-holder's consent and can be expensive to remove.
Any third-party claim, restriction or interest registered against the property title.
An encumbrance is any registered third-party interest, claim or restriction on a property title — the broad umbrella term covering mortgages, caveats, easements, covenants, leases and statutory charges. Conveyancers run title searches to identify every encumbrance before settlement. Some encumbrances (like the seller's mortgage) are discharged at settlement; others (easements, covenants) remain on title indefinitely.
A registered restriction on what you can build or do on a property — often imposed by the original developer.
A restrictive covenant is a registered rule on the title limiting how the land can be used — common in master-planned estates, where developers impose building covenants like "no second-storey extension," "minimum two-car garage," "no boats parked on driveway" or "homes must be of brick construction." Covenants generally run with the land in perpetuity and bind every future owner. Removing or modifying a covenant requires court order or unanimous beneficiary consent.
BAL rating, NMI, MIRN, DRR — the move-in setup vocabulary.
A combined policy covering the building (home) plus everything inside (contents).
Home and contents insurance bundles two separate covers: home (building) insurance covers the physical structure for events like fire, storm and theft; contents insurance covers your belongings inside it. Most lenders require home insurance from settlement day onward; contents is optional but recommended. Strata-titled apartments don't need home cover (the owners corporation insures the building) but contents insurance is still important.
A specialised cover for investment property owners — adds tenant default and loss-of-rent on top of standard home insurance.
Landlord insurance is a tailored policy for investment property owners. It includes standard home (building) cover plus protections specific to renting — tenant default, malicious damage by tenants, loss of rent during repairs, and liability cover for tenant injuries. Standard home & contents policies usually exclude tenant-related damage, so landlords need a dedicated landlord product.
A six-tier rating (BAL-LOW to BAL-FZ) measuring a property's bushfire exposure under AS 3959.
Bushfire Attack Level is the standard rating for a property's bushfire risk under Australian Standard AS 3959. Levels run from BAL-LOW (negligible) through BAL-12.5, BAL-19, BAL-29, BAL-40 to BAL-FZ (Flame Zone — direct contact with flames). Properties in BAL-rated zones must meet specific construction standards, and higher BAL ratings significantly increase build costs (often $20,000 to $100,000+ for BAL-40 or FZ). Home insurance premiums also rise sharply at BAL-29 and above.
The 10- or 11-digit ID for your electricity meter — needed when setting up a new electricity account.
The National Metering Identifier is a unique 10-digit (sometimes 11) number identifying your electricity meter on the national grid. When you move into a new home, your incoming electricity retailer needs your NMI to connect the meter to your account — usually printed on a previous electricity bill, or available from the property settlement agent or distributor. NMIs are used in NEM (National Electricity Market) states: QLD, NSW, ACT, VIC, SA, TAS.
The gas-meter equivalent of an NMI — a unique 10-11 digit ID needed to set up gas accounts.
A Meter Installation Reference Number (also called a Delivery Point Identifier or DPI in some states) is the unique number identifying your gas meter on the network. Your incoming gas retailer needs the MIRN to connect supply to your account. Find it on a previous gas bill or by contacting the local gas distribution network (Jemena, AGN, Multinet etc.). Gas is not connected in all Australian homes — new estates increasingly skip gas entirely.
The maximum reference electricity price set by the AER for customers who haven't actively chosen a plan.
The Default Market Offer is a price cap set annually by the Australian Energy Regulator that limits what retailers can charge customers in NSW, SE QLD and SA who haven't actively chosen a plan. Victoria has its own version called the Victorian Default Offer (VDO). If you move into a property without choosing a retailer or plan, you'll usually be charged the local DMO — which is rarely the best available rate. Always compare and switch within a few weeks of moving in.
The federal regulator overseeing energy retail markets in NSW, SE QLD, SA, ACT and Tasmania.
The Australian Energy Regulator is the national body that monitors and enforces energy market rules — including setting the Default Market Offer. The AER operates the Energy Made Easy comparison website. Victoria runs its own regulator (Essential Services Commission) and price benchmark (Victorian Default Offer). WA and the NT are not connected to the national grid and have separate state regimes.
The credit you receive per kWh of solar electricity exported to the grid from rooftop solar panels.
A feed-in tariff is the payment (per kWh credit on your electricity bill) for solar power your rooftop panels export to the grid instead of using yourself. FiT rates vary by retailer and state — typically 4 to 10 cents per kWh as at 2026, far below what you'd pay to import electricity. There are no longer any government-mandated minimum FiTs in most states; retailers set their own rates competitively.
A one-off charge from a utility retailer to open a new account at a property.
Connection fees are one-off charges retailers add when you open a new electricity, gas, water or internet account at a property. Electricity and gas connection fees are typically $5 to $50 depending on retailer. NBN connections can be free if equipment is already installed or hundreds of dollars if a new line needs to be run. Water connection (where applicable) is usually billed by the council or state water authority.
A combination of fixed service charges and per-kilolitre usage charges on water — billed by state or council water authorities.
Water rates in Australia are typically two-part: a fixed quarterly service charge (varies by state and property type) plus a usage charge per kilolitre of water actually consumed. Sewerage is usually billed as a separate service charge. Tenants normally pay usage charges only; owners pay both service and usage. Water is billed by Sydney Water, Yarra Valley Water, Urban Utilities (QLD), SA Water, Water Corporation (WA) etc. depending on state.
Annual property tax paid to your local council — funds roads, parks, libraries and waste collection.
Council rates are an annual property tax paid to your local government to fund municipal services — road maintenance, libraries, parks, waste collection, planning. Rates are calculated based on the unimproved land value or the capital improved value (depending on the state) multiplied by the council's rate-in-the-dollar. Typical residential rates are $1,500 to $4,000 per year. Pensioners qualify for rebates in every state.
Insurance covering defects on newly built homes — mandatory in most states for builds over $20,000.
Home Warranty Insurance (called Domestic Building Insurance in VIC, Home Building Compensation in NSW, Home Warranty in QLD) is mandatory cover most states require builders to take out before doing residential work above a value threshold (commonly $16,000 to $20,000). It protects the homeowner against builder insolvency, death or disappearance, and defective work for up to 6 years on structural defects and 2 years on non-structural. The premium is paid by the builder and passed through to the contract price.
EER, COP, MEPS, WELS, R-value, MERV — the labels on every AU appliance.
A 0–10 star rating measuring a residential property's thermal performance — mandatory disclosure in the ACT.
Energy Efficiency Rating is a 0 to 10 star scale measuring how well a building retains heat in winter and stays cool in summer, based on the Nationwide House Energy Rating Scheme (NatHERS). The ACT has required EER disclosure on every property listing since 1999 — buyers see a star rating on every advertisement. New homes built across Australia must achieve a minimum 7-star NatHERS rating under the 2022 National Construction Code update (progressively adopted by states).
A ratio measuring how efficiently a heat pump or reverse-cycle AC converts electricity to heating.
Coefficient of Performance is the ratio of heat output to electrical input for a heat pump or reverse-cycle air conditioner. A COP of 4.0 means the unit delivers 4 kW of heat per 1 kW of electricity consumed — far more efficient than a 1:1 resistive heater. COP is typically measured at a specific outside temperature (commonly 7°C). Higher COP = lower running cost. The seasonal equivalent is ACOP (Annual Coefficient of Performance).
The mandatory minimum efficiency every electrical appliance sold in Australia must meet.
Minimum Energy Performance Standards are federally mandated minimum efficiency thresholds for electrical appliances and equipment sold in Australia. Products that fall below MEPS cannot legally be imported or sold. MEPS covers refrigerators, freezers, washing machines, dryers, air conditioners, water heaters, electric motors, transformers and many other categories. The standards are reviewed and tightened periodically — what was a 4-star fridge a decade ago might not even meet MEPS today.
The mandatory water-efficiency star rating shown on every Australian tap, toilet, washing machine and dishwasher.
Water Efficiency Labelling and Standards is the mandatory scheme requiring a star rating (0 to 6 stars) and litres-per-flush or litres-per-minute figure on every regulated product sold in Australia. WELS covers taps, showerheads, toilets, urinals, dishwashers and clothes washers. Higher star ratings mean less water consumed for the same performance — significant for both running costs and water bills, especially in restricted-supply states.
The 0–6 star (sometimes 0–10) efficiency label on every regulated Australian appliance.
The Energy Star Rating Label appears on every regulated appliance sold in Australia (refrigerators, freezers, washers, dryers, dishwashers, air conditioners, TVs and computer monitors). The star scale runs from 0 to 6 stars for most products and 0 to 10 stars for "Super-Efficiency Rating Label" products. The label also shows annual energy use in kWh, letting you estimate running costs at your local electricity rate.
The thermal resistance rating of insulation — higher R = better at blocking heat transfer.
R-value measures how well an insulation material resists heat flow, expressed in m²·K/W. Higher R-values mean better insulation. Australian building codes specify minimum R-values for roof, wall and floor insulation based on climate zone — typically R5.0 to R6.0 for ceilings in temperate Australia, higher in cold-climate Tasmania and alpine regions. Insulation R-values are additive — adding R2.5 batts to an existing R3.5 ceiling gives R6.0 total.
A 1–20 rating for air filter effectiveness — used for HVAC and air purifier filters.
Minimum Efficiency Reporting Value is a 1 to 20 rating from ASHRAE for how well an air filter captures airborne particles. MERV 8 to 13 are typical for residential HVAC and air purifiers, capturing pollen, dust mites, mould spores and most particulates. MERV 13+ captures bacteria and smoke particles. MERV is the American standard most commonly cited on Australian filters; the European equivalent is ISO 16890 / EPA / HEPA classification.
The composite measure of indoor air pollutants (PM2.5, VOCs, CO₂, humidity) affecting health and comfort.
Indoor Air Quality is the composite measure of air pollutants and conditions inside a building — particulate matter (PM2.5 and PM10), volatile organic compounds (VOCs), carbon dioxide (CO₂), formaldehyde, humidity and temperature. Poor IAQ is linked to respiratory issues, allergies and "sick building syndrome." Modern smart air purifiers, ventilation systems and IAQ sensors are becoming more common in Australian homes — especially after the 2019-20 bushfire smoke season.
The standard unit of electricity consumption — one 1000W appliance running for one hour.
A kilowatt-hour is the standard billing unit of electricity in Australia. One kWh equals 1000 watts of power consumed for one hour. The "annual energy use" figure on every appliance label is expressed in kWh per year. Multiplying that figure by your electricity rate (typically 25 to 40 cents per kWh in 2026) gives an estimated annual running cost.
The energy-efficiency star count specifically for refrigerators — the same 0-6 scale applied to fridge-specific testing.
Refrigerators sold in Australia must display the Energy Star Rating Label showing stars (typically 0 to 6, sometimes 0 to 10 on super-efficient models) and annual energy use in kWh. The rating tests a fridge's energy use under standardised lab conditions; real-world use can differ based on ambient temperature, door-opening frequency and food load. A 4-star fridge versus a 2-star fridge typically costs $50 to $120 less per year to run depending on size.
A two-digit rating (e.g. IP65) measuring an appliance's resistance to dust and water — common on outdoor and bathroom fittings.
Ingress Protection is the IEC 60529 international standard rating for how well an enclosure resists solid objects and water. The first digit (0–6) rates dust protection; the second digit (0–9) rates water protection. IP44 is splash-proof; IP65 is dust-tight and water-jet resistant; IP67 can be submerged in water briefly. Common on outdoor lighting, bathroom appliances, solar panels and smart-home sensors.
The sound level an appliance produces, measured in decibels — lower = quieter.
Appliance noise is rated in decibels (dB), often measured 1 metre from the source under standardised lab conditions. The scale is logarithmic — a 10 dB increase is roughly twice as loud perceptually. For reference: a quiet library is ~30 dB, a normal conversation ~60 dB, a vacuum cleaner ~70 dB, a chainsaw ~110 dB. Many premium AU appliances now publish dB ratings (dishwashers, air conditioners, range hoods, washing machines).
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