Federal and state entitlements for Defence Force property buyer

Do you know your ADF entitlements?

Maximising ADF defence, federal and state entitlements

It’s not going to come as a surprise to anyone reading this that there are unique opportunities and entitlements available for members of the Australian Defence Force (ADF). But it’s easy to feel overwhelmed and be unsure about how to take advantage of them. If you leave it too late, you can miss out on some great opportunities that could make a huge difference to your future financial security.

At Capital Properties, we specialise in helping ADF members invest their disposable income wisely to achieve long-term financial freedom. Understanding the various defence, federal, and state entitlements for Defence members is a crucial first step in maximising these benefits. In this blog post, we’ll break down what your entitlements are and how you can take advantage of them.

Our free Capital Properties Discovery Session is designed to help you make informed investment choices and take advantage of the various entitlements for Defence members.

On the go? Here’s 30 seconds of take outs:

• There are multiple defence, federal, and state entitlements to incentivise Defence members to buy property.
• The Defence Home Ownership Assistance Scheme (DHOAS) provides monthly subsidy payments on home loan interest.
• The Home Purchase Assistance Scheme (HPAS) comes as a lump-sum payment of $16,949 before tax.
• The Home Purchase or Sale Expenses Allowance (HPSEA) reimburses some of the costs related to selling a home.
• The ADF Housing program provides affordable housing options for Defence members and their families.
• (Reading this & looking to join Defence?) get this ADF members are eligible have a large chunk of their rent paid! AKA Rent Allowance.
• The federal Home Guarantee Scheme (HGS) supports eligible home buyers to buy a home sooner. It includes 3 types of guarantees:- First Home Buyer Guarantee (FHBG)- Regional First Home Buyer Guarantee (RFHBG)- Family Home Guarantee (FHG).
• Many Australian states offer stamp duty concessions/exemptions for ADF members. Eligibility criteria and benefits vary by state & territory.
• As well as the federal First Home Buyer Guarantee (FHGB), many states offer their own first home buyer assistance schemes. Eligibility criteria vary by state & territory.

Keep reading >>

Defence entitlements

Pay and entitlements for Defence members

The Defence Enterprise Collective Agreement 2024 (DECA) outlines pay and conditions for all Defence Australian Public Service (APS) employees. That includes salary rates, salary packaging, superannuation contribution, financial support for relocation and additional financial allowances such as for particular services, or remote locations etc. Generally, ADF salaries are generous from day one and increase with experience.

ADF members are also entitled to free or subsidised medical and dental care via Medicare as well as comprehensive ambulance cover. But it’s the other perks that really make a difference to your future financial security. And those perks are the multiple defence, federal, and state entitlements for Defence members that incentivise ADF personnel to buy property. And, as property investment specialists, helping ADF members to take advantage of these entitlements is Capital Properties’ bread and butter.

DEFENCE HOME OWNERSHIP ASSISTANCE SCHEME (DHOAS)

The Defence Home Ownership Assistance Scheme (DHOAS) is one of the most significant benefits available to ADF members. This scheme provides monthly subsidy payments on home loan interest, making homeownership more affordable for Defence personnel. DHOAS can be used for buying a home, buying land, building a home, renovating or extending your home, or refinancing a loan for one of these purposes. ADF members are also eligible to access competitively priced home insurance through Defence Service Homes (DSH) Insurance as an additional benefit.

There are three subsidy tier levels and the amount you’ll receive depends on the length of service, with longer-serving members receiving higher subsidies. The three Home Loan Providers that offer DHOAS home loan products are:

• Australian Military Bank
• Defence Bank Limited
• NAB

DHOAS entitlements: 

Minimum service (Permanent)	Minimum service (Reservists)	Subsidy tier	Subsidised loan limit (2024-25)	Maximum monthly subsidy*
2 years	4 years	Tier 1	$396,965	Up to $577
4 years	8 years	Tier 2	$595,447	Up to $866
8 years	12 years	Tier 3	$793.930	Up to $1,155

* Maximum monthly subsidy amounts are based on the median interest rate valid as of June 2024. Please note, the subsidy values will decrease if interest rates are reduced.

For full eligibility criteria, click here.  Download the Defence Home Ownership Assistance Scheme (DHOAS) Fact Sheet here

HOME PURCHASE ASSISTANCE SCHEME (HPAS)

The Home Purchase Assistance Scheme (HPAS) is an ADF property investment assistance scheme designed to help you purchase your home. It comes as a lump-sum payment of $16,949 before tax – not bad!

If you’re considering buying a house while in the defence force, the amount you’re eligible to receive depends on your ownership share. For example, if you’re buying a property with your partner, the amount will be halved. Plus, if you sell this home in the future, you may be eligible to claim costs using the Home Purchase or Sale Expenses Allowance (HPSEA).

For full eligibility criteria, click here.

DEFENCE HOUSING AUSTRALIA (DHA)

The ADF Housing program provides affordable housing options for Defence members and their families. These properties are in areas with a high demand for Defence personnel, ensuring that members have access to quality housing near their place of duty. Plus, maintenance and property management provided by Defence. See all ADF housing options here.

RENT ALLOWANCE (RA)

ADF members who don’t own property in their posting area or haven’t been provided with service accommodation may be eligible for Rent Allowance. This allowance helps cover the cost of renting, ensuring that they can afford to live comfortably when posted away from home.

For full eligibility criteria, click here.

FIRST HOME BUYER GUARANTEE (FHBG)

The First Home Buyer Guarantee (FHGB) supports eligible first-home buyers to buy a home sooner, with a deposit as little as 5% without the need for Lenders Mortgage Insurance (LMI). That’s because the Australian Government guarantees up to 15% of the value of the property, which is essentially the difference between the buyer’s deposit and the typical 20% deposit required to avoid LMI. The government has allocated 35,000 of these guarantees in the 2024-25 financial year.

You can use the FHGB in conjunction with other government programs like the First Home Super Saver Scheme, or state and territory first home-owner grants and stamp duty concessions.

For full eligibility criteria, click here.  Download the FHGB fact sheet here.

REGIONAL FIRST HOME BUYER GUARANTEE (RFHBG)

The Regional First Home Buyer Guarantee (RFHBG) allows eligible home buyers to buy a modest home in a regional area, with a deposit of 5% or more. Up to 15% of the value of the property is guaranteed, so no need for Lenders Mortgage Insurance (LMI.) From 1^st July 2024 to 30 June 2025, there are 10,000 RFHBG places available. As the name states, these must be in a regional area – you can check the suburb or postcode eligibility here.

For full eligibility criteria, click here.  Download the FRHGB fact sheet here.

FAMILY HOME GUARANTEE (FHG)

The Family Home Guarantee (FHG) covers up to 18% of the value of the property to allow eligible single parents/guardians of at least one dependent to buy a home with a deposit as little as 2%, whether they are a first home buyer or a previous homeowner. From 1^st July 2024 to 30 June 2025 there are 5,000 FHG places available.

For full eligibility criteria, click here.  Download the FHG fact sheet here.

State entitlements for ADF members

STAMP DUTY CONCESSIONS

Many Australian states offer stamp duty concessions or exemptions for ADF members. These concessions can significantly reduce the cost of purchasing a property, making it easier for Defence personnel to invest in real estate.

Eligibility criteria and benefits vary by state but generally include:

– Concessions for first home buyers.

– Exemptions for properties below a certain value.

– Additional benefits for properties in regional areas.

FIRST HOME BUYER ASSISTANCE SCHEMES IN DIFFERENT STATES

In addition to the federal First Home Buyer Guarantee (FHGB), many states offer their own first home buyer assistance schemes. These programs often provide additional financial support, including grants, concessions, and low-deposit loans. Eligibility criteria vary by state and territory, so we’ve posted links to the sources below.

New South Wales: First Home Buyer Assistance Scheme (FHBAS).

In NSW, eligible first home buyers can apply for a transfer duty exemption or pay a reduced rate when buying an existing home, new home or land to build a home on. First home buyers purchasing an existing property for $800,000 or less won’t pay any transfer duty. Those purchasing a property valued between $800,000 and $1 million will pay a reduced rate.

For full eligibility criteria, click here.

Victoria: First Home Owner Grant and Regional First Home Buyer Grant.

In Victoria, a $10,000 First Home Owner Grant (FHOG) is available when you buy or build your owner-occupied home which must be valued at $750,000 or less.

For full eligibility criteria, click here.

Queensland: First Home Owner Grant and Transfer Duty Concessions.

The Queensland First Home Owner Grant gives eligible first-time buyers $15,000 (for contracts signed before 20 November 2023) or $30,000 (for contracts signed between 20^th November 2023 and 30^th June 2025) towards buying or building a new home in Queensland.

For full eligibility criteria, click here.

Transfer duty concessions and exemptions in Queensland

Concessions and exemptions are available to reduce the amount of transfer duty (aka stamp duty) you need to pay when buying a home. These are the types of concessions that can be claimed:

• First home concession: first homeowners pay a lower rate of duty and are eligible for a further rebate that could result in paying zero duty.
• First home vacant land concession: when buying land to build your first home you may get a rebate that may result in paying no duty.
• Home concession: there’s a lower rate of duty for your second home.

For more details on Queensland’s Transfer Duty Concessions, click here.

Western Australia (WA): First Home Owner Grant

The WA First Home Owner Grant (FHOG) is a one-off payment of $10,000 for first home buyers to buy or build a new residential property for use as their principal place of residence. The FHOG is available for the purchase of a new home or a home that has undergone substantial renovations. The FHOG isn’t available for established homes.

For full eligibility criteria, click here.

South Australia (SA): First Home Owner Grant

The SA First Home Owner Grant (FHOG) of up to $15,000 is available if you are buying or building a new home as your principal place of residence.

For full eligibility criteria, click here.

Australian Capital Territory (ACT): Home buyer concession scheme

The ACT Government has a concession scheme removing or reducing duty to help people buy a home or residential land. The ACT First Home Buyers Grant (FHOG) payments are NOT available for applicants who entered a transaction with a commencement date on or after 1^st July 2019.

For full eligibility criteria, click here.

Northern Territory (NT): First Home Owner Grant

The NT First Home Owner Grant (FHOG) allows applicants to get a $10,000 grant to buy or build a new home. The “Guide to the application” is available as a pdf here.

For full eligibility criteria, click here.

Tasmania: First Home Owner Grant

In Tasmania, the First Home Owner Grant (FHOG) is available to eligible applicants who purchase or build a new home that has not previously been occupied or sold as a place of residence and includes kit homes.​

The amount of the grant is determined by the date that the eligible transaction​ commenced:

• Transactions commencing from 1^st July 2024 will be eligible for $10,000.
• Transactions between 1 April 2021 and 30 June 2024 were eligible for $30,000.

For full eligibility criteria, click here.

If you made it to the bottom of these lists, congratulations! Now that you’re aware of your entitlements for Defence members, let’s make sure you know how to make the most of them. We recommend starting with thoroughly assessing your current financial position and clarifying your financial goals. The best place to do this is with our FREE Discovery Session.

Remember the team at Capital Properties live and breathe ADF property investment. We can help you prepare your applications for the grants. And, our Capital Properties free online tools and apps, including calculators, checklists and more will help you make informed decisions.