New financial year, new opportunities for homebuyers.
The 2024-25 financial year brought a raft of changes with real implications for homebuyers and existing borrowers. From 50,000 new spots in the First Home Guarantee to lower income tax rates and a higher minimum wage, the updates touched almost every part of the home loan equation.
This guide covers each of the key EOFY homebuyer changes for 2024 in plain English. Use our borrowing power calculator to see how the income and tax changes affect your situation.
First Home Guarantee
Housing Australia released 50,000 new places under the Home Guarantee Scheme for 2024-25. The scheme lets eligible buyers purchase a property with a deposit as small as 2% to 5% without paying Lenders Mortgage Insurance, because the government guarantees the remaining portion of the loan.
The 50,000 places are split across three streams:
To qualify, your taxable income needs to be under $125,000 as a solo buyer or under $200,000 for a couple. You’ll need a consistent savings history and your most recent Notice of Assessment, so file your tax return early once the financial year ends.
Stage 3 tax cuts
From 1 July 2024, the Stage 3 tax cuts changed the income tax rates applying to most working Australians. The key changes are:
A lower tax rate means more take-home pay each month. Banks use your after-tax income to work out how much you can borrow, so these cuts directly improve your borrowing capacity. The effect is most significant for people earning between $45,000 and $135,000 per year. For more on how income and interest rate changes combine, read our guide on RBA rate cuts and borrowing power.
Wages and super
Two further changes from 1 July 2024 affect your income and savings.
The National Minimum Wage rose by 3.75%, lifting the weekly rate to $915.90, or $24.10 per hour. Award wages increased by the same percentage. If your pay is tied to the minimum wage or an award rate, your employer must pay the new amount from the first full pay period after 1 July 2024.
The Superannuation Guarantee also lifted from 11% to 11.5%. Employers now contribute more to your super on top of your wages. This won’t reduce your take-home pay, but it grows your retirement savings. A stronger super balance can also factor positively into a lender’s overall assessment.
Use our loan repayment calculator to see how your updated income changes your monthly home loan repayments.
Energy rebate
Every Australian household receives a $300 energy rebate as part of the 2024 Federal Budget. Small businesses get $325. The credit is applied directly to your energy account — there’s nothing to claim.
This doesn’t change your borrowing capacity, but it does ease cost-of-living pressure. If you’re in deposit-saving mode, lower energy bills mean more cash to put aside each quarter. Small savings add up fast over a 12-month period when you’re building a house deposit.
Victoria CIPT
Victoria introduced the Commercial and Industrial Property Tax (CIPT) from 1 July 2024. This annual tax replaces stamp duty on commercial and industrial properties only. It does not apply to residential purchases.
The CIPT rate is 1% of the land’s unimproved (site) value per year. A reduced rate of 0.5% applies to qualifying build-to-rent developments. If you’re buying a home to live in or a standard residential investment in Victoria, CIPT does not affect you.
If you’ve had a home loan application declined and aren’t sure why, read our guide on home loan declined reasons to understand what lenders are looking at.
Common questions
Q: Do the Stage 3 tax cuts automatically improve my borrowing power?
Yes. Lenders calculate borrowing capacity based on your after-tax income. Lower tax rates from July 2024 mean your assessed net income is higher, which increases how much you can borrow. The impact is greatest for incomes between $45,000 and $135,000 per year.
Q: Can I apply for the First Home Guarantee if I’ve owned property before?
Not through the First Home Guarantee or Regional First Home Guarantee — those are for people who have never owned residential property in Australia. The Family Home Guarantee operates under different rules and may be available to eligible single parents who no longer own a property.
Q: Does the minimum wage increase count as income for a home loan application?
Yes. Once your payslips reflect the new rate from July 2024, lenders treat the updated amount as your verified base income. A higher base income generally improves your borrowing capacity, subject to your overall expenses and existing debts.