HPAS & HPSEA Explained: The Defence Home Purchase Payments Most Members Miss (2026)

By Chaice Paterson, CEO & Founder, Low Deposit Homes | Updated June 2026

Alongside DHOAS, there are two more Defence housing benefits that go straight to your upfront costs — and they’re the ones members most often leave unclaimed. HPAS (the Home Purchase Assistance Scheme) is a one-off lump sum of $16,949 before tax, paid once in your career, to help a permanent ADF member buy or build their first home in their posting location. HPSEA (the Home Purchase or Sale Expenses Allowance) is different — it reimburses reasonable costs like conveyancing, legal fees and agent’s commission when an official posting forces you to sell and/or buy. One is a cash payment toward your first home; the other is a reimbursement that protects your savings when Defence moves you. Here’s exactly how each works, who qualifies, and how they fit with DHOAS and the first home buyer grants.

What is HPAS and how much is it?

HPAS is a one-off payment of $16,949 before tax to help eligible permanent ADF members buy or build a home in their current posting location. Because it’s treated as taxable income, what lands in your hand depends on your marginal tax rate — commonly somewhere around $11,000–$12,000 after tax. It’s designed to knock down the upfront barrier of getting into the market while you’re serving.

To be eligible for HPAS you must:
– be a permanent member of the ADF (Reservists are not eligible for HPAS),
– buy or build in your current posting locality,
– intend to live in the home as your principal place of residence for at least 12 months, and
– not have received HPAS before (it’s a once-per-career benefit).

A note on joint ownership: where the property is jointly owned with a non-ADF person, the entitlement can be affected by your share of ownership, so confirm your exact position. HPAS is generally paid after settlement, once your claim is approved through Defence payroll — so plan for it as a post-settlement boost (often used to make an early lump-sum repayment), not deposit money in your hand on day one.

What is HPSEA and how is it different?

HPSEA is not a lump sum — it’s a reimbursement of reasonable costs you incur buying or selling a home because an official posting requires you to relocate. You generally pay the costs first, then claim them back. Typical reimbursable costs include conveyancing and legal fees, real estate agent’s commission on a sale, and certain government/registration fees connected to the transaction. It’s tied to a genuine posting-driven move — the classic case being a member who owns in one posting location, gets posted elsewhere, and sells then buys again near the new base.

The key mental model: HPAS helps you get into your first home; HPSEA protects you when Defence moves you between homes. They serve different moments in a service career.

How do HPAS and HPSEA work with DHOAS and the grants?

This is where Defence members can assemble something no civilian buyer can. On a first-home purchase near your base, the levers line up like this:

5% Deposit Scheme — 5% deposit, no LMI (civilian)
First Home Owner Grant — where the new-build package qualifies under $750,000 (civilian)
$0 stamp duty — Queensland first home buyer, new build, no price cap (civilian)
HPAS — $16,949 (before tax) toward the purchase (Defence)
DHOAS — ongoing monthly subsidy on the loan afterward (Defence)
HPSEA — if a posting drove the move, reimburses the transaction costs (Defence)

The civilian schemes cut your entry cost, HPAS adds upfront cash, DHOAS cuts your ongoing repayment, and HPSEA shields you from relocation costs. Because the Defence benefits (via DVA and Defence) and the civilian schemes (via the states) sit in separate systems, qualifying for one doesn’t reduce the others — but no single official source adds them up for you. That’s the gap we close, with defence-savvy lenders who understand how DHOAS, HPAS and the grants combine.

A note on timing — why “posting location” matters

Both HPAS (buy in your posting locality, live there 12 months) and HPSEA (posting-driven move) are anchored to where you’re posted. That’s why buying near your base isn’t just convenient — it’s often what keeps these benefits in play. It’s also why a house-and-land build timeline is worth planning around your posting cycle. We build in the corridors around the major South East Queensland and Victorian bases precisely so members can buy where their entitlements apply — though we build across both states and match you to wherever your posting points.

Frequently asked questions

How much is HPAS? $16,949 before tax, paid once per career. After tax it’s commonly around $11,000–$12,000 depending on your marginal rate.

Can Reservists get HPAS? No — HPAS is for permanent ADF members only. Reservists may still access DHOAS (with longer qualifying periods) and the civilian first home buyer schemes.

Is HPAS paid before or after I buy? Generally after settlement, once the claim is approved through Defence payroll — so treat it as a post-purchase boost rather than deposit funds.

Is HPAS taxed? Yes, it’s treated as taxable income, so your take-home depends on your marginal tax rate.

Does HPSEA cover stamp duty? HPSEA reimburses reasonable, approved posting-related transaction costs; the precise list of what’s covered is defined by the Department, so confirm your specific costs. As a first home buyer you may separately pay $0 stamp duty in Queensland on a new build regardless.

Can I claim both HPAS and HPSEA? They cover different situations (first-home purchase vs posting-driven relocation costs) and have their own rules — your eligibility for each is assessed separately. We can help you understand which apply to you.

Find out which Defence payments you can claim

Book your free 15-minute consultation | 1800 920 172

Related Defence guides

Low Deposit Homes operates under Winning Homes Australia Pty Ltd (ACN 633 321 758). HPAS/HPSEA figures and conditions current as at June 2026; confirm your entitlement with the Department of Defence (ADF Pay and Conditions) and DVA. General information only, not financial or credit advice.