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HPAS Explained

HPAS: Home Purchase Assistance Scheme for ADF members

One page. Everything HPAS.

Understand what HPAS is, who is eligible, how to apply, when it’s paid, and how to use it alongside DHOAS, HPSEA and state grants.

HPAS at a Glance

  • What it is: A one-off lump sum to help buy or build your first home in your posting location.
  • Amount: $16,949 before tax. Paid once per career.
  • Tax: Treated as taxable income. Take-home depends on your marginal rate.
  • Occupancy: You must live in the home as your principal place of residence (PPOR) for 12 months.
  • Timing: Paid after settlement and claim approval through Defence payroll.

What is HPAS?

The Home Purchase Assistance Scheme (HPAS) is a financial benefit available to eligible members of the Australian Defence Force (ADF). It provides a one-off lump sum payment to help cover the up-front costs of buying or building your first home in your current posting location.

The payment is designed to reduce the financial barrier of entering the property market while serving in the ADF. HPAS is separate from other housing benefits such as the Home Purchase or Sale Expenses Allowance (HPSEA), which reimburses specific buying and selling costs, and the Defence Home Ownership Assistance Scheme (DHOAS), which provides an ongoing mortgage subsidy.

Currently, the HPAS amount is $16,949 before tax (2025 figure). It is treated as taxable income, so your actual take-home will depend on your marginal tax rate.

Who is eligible for HPAS?

You may be eligible for HPAS if you:

  • Are a permanent member of the ADF (Reservists are not eligible).
  • Purchase a property in your current posting locality.
  • Intend to live in the home for at least 12 months as your principal place of residence (PPOR).
  • Have not previously received HPAS.

Additional rules apply:

  • Defence couples: Both members cannot claim HPAS for the same property.
  • Joint purchases: If buying with someone who is not a resident family member, the payment may be pro-rated to reflect your share of ownership.
  • Vacant land and build: You can claim HPAS once the home is built and you have lived in it for 12 months.
  • Unaccompanied Residence Factor (URF): You must still meet the occupancy requirement. If you cannot occupy the property due to unaccompanied posting status, you may need to wait until a posting where you can.

How does HPAS work?

  1. Purchase a home in your posting location and settle the property.
  2. Move in and make it your principal place of residence.
  3. Submit your claim via PMKeyS Self Service or through your unit/pay office using the required documentation (Form AC970 on the Defence Protected Network).
  4. Once approved, the payment is processed through Defence payroll and taxed at your marginal rate.

In most cases, members receive payment within 2–4 weeks of claim approval.

Payment timing and taxation

  • When it is paid: HPAS is paid after settlement, once your claim is approved.
  • How it is paid: The amount is added to your regular pay and taxed as income.
  • After-tax amount: Most members receive between $11,000 and $13,500, depending on their tax bracket. 

Many members use HPAS funds to cover up-front purchase costs such as stamp duty, legal fees, inspections, or moving expenses.

Using HPAS with other benefits

HPAS can be combined with several other entitlements and government grants:

  • HPAS + DHOAS: A common combination. HPAS assists with buying, while DHOAS provides an ongoing mortgage subsidy.
  • HPAS + HPSEA: HPSEA reimburses specific buying and selling costs (such as agents’ fees or stamp duty).
  • HPAS + First Home Owner Grant (FHOG): HPAS does not affect state-based first home buyer schemes.

Stacking these benefits can significantly reduce the cost of buying and holding a property.

Strategic use of HPAS

Because HPAS is a once-per-career benefit, it’s important to use it wisely. Consider the following:

  • Stability of posting: Only claim if you are confident you can live in the home for at least 12 months.
  • Long-term suitability: Choose a location you could see yourself keeping as a home or investment.
  • Future investment potential: After the 12-month occupancy requirement, you may rent the property out and keep the HPAS benefit.
  • Combining with DHOAS: Using HPAS to buy and then leveraging DHOAS for mortgage support can be an effective strategy for long-term wealth building.

Repayments and Compliance

Defence may recover the HPAS payment if:

  • You do not occupy the property as your principal residence within the required 12 months.
  • The purchase does not proceed after payment.

In limited cases, waivers may apply, for example, if you receive an unexpected posting outside your control.

Common Mistakes to Avoid

  • Buying a home outside your posting locality.
  • Attempting to claim HPAS on an investment property you do not occupy.
  • Defence couples trying to double-claim on the same property.
  • Lodging an application without the required documentation.
  • Claiming during a short posting and failing to meet the 12-month occupancy rule.

Where to Get Help

Working out how HPAS fits alongside DHOAS, HPSEA and state-based grants can be confusing. There are a few resources you can turn to for clear guidance:

At Axon, we’ve also put together a training video series that breaks down entitlements like HPAS, HPSEA and DHOAS in plain English. Many ADF members find it useful for understanding how these benefits work together and how to use them strategically.

If you’d like more tailored guidance, our team can step you through how to make the most of your entitlements and how they fit into your broader property goals.

Sign up for our free ADF entitlements training guide here. 

Complete Our Free ADF Training!

HOW TO BE A PROPERTY OWNER WITH YOUR ADF HOUSING ENTITLEMENTS: DHOAS, HPAS & HPSEA

In this FREE training you are going to find out:

  •  What are your Defence Housing Entitlements
  •  How to buy property using your entitlements
  •  The best locations for capital growth and rent returns
  •  The secret to creating a sustainable property portfolio
  •  How to secure your financial freedom
Watch Now!

Frequently Asked Questions

What is HPAS?

The Home Purchase Assistance Scheme (HPAS) is a one-off lump sum paid to eligible permanent ADF members to help with the up-front costs of buying or building their first home in their posting locality. To qualify, you must live in the property for at least 12 months as your principal place of residence. The current HPAS amount is $16,949 before tax.

HPAS is treated as taxable income. Most members receive between $11,000 and $13,500 after tax, depending on their income bracket and marginal tax rate.

Yes. HPAS is considered assessable income and is taxed through Defence payroll at your marginal rate.

Once you’ve purchased and settled your home, you move in and make it your principal place of residence. You then submit a claim for HPAS through PMKeyS Self Service or your unit’s pay office. Once approved, the lump sum payment is processed through Defence payroll, typically within one or two pay cycles. HPAS is paid only once during your career and can be combined with HPSEA and DHOAS if you meet the eligibility requirements.

HPAS is paid after settlement, once your approved claim has been processed by Defence payroll. Most members receive payment within two to four weeks, provided all documentation is complete.

The HPAS amount is a fixed figure set by Defence. If you are purchasing a property with a non-resident family member, Defence may adjust (pro-rate) your payment to reflect your share of ownership.

You can apply for HPAS after settlement and once you have moved into the property as your principal place of residence. Applications can be lodged via PMKeyS Self Service or through your unit/pay office.

Once your claim is approved, payment usually appears in your pay within one to two pay cycles (around two to four weeks). Delays may occur if Defence requires additional documentation.

To be eligible for HPAS, you must:

  • Be a permanent member of the Australian Defence Force (Reservists are not eligible).
  • Purchase a property in your current posting locality.
  • Occupy the home for at least 12 months as your principal place of residence.
  • Have not previously received HPAS.

Defence couples cannot both claim HPAS for the same property.

No. HPAS is only available to permanent ADF members who meet the service and occupancy criteria.

You must be on continuous full-time service and purchase the property within your current posting locality. You must also occupy the home as your principal place of residence for at least 12 months.

No. HPAS is a once-per-career benefit. Once you have received it, you cannot claim it again.

If you do not occupy the home for the required 12-month period, Defence may recover the full HPAS payment. However, a waiver may be granted in exceptional circumstances, such as an unexpected posting or other factors beyond your control.

You must still meet the 12-month occupancy rule. If you cannot live in the property due to an unaccompanied posting, you will usually need to wait until you are posted to a location where you can occupy the home.

As HPAS is a cash payment, you can use it for any expenses related to buying or moving into your home. Many members use it to cover stamp duty, legal fees, inspections, moving costs, or to top up their deposit.

No. HPAS cannot be claimed for the purchase of land alone. If you are building a home, you can apply for HPAS once the home is completed and you have lived in it for 12 months.

Yes. Once paid, HPAS is not restricted to specific expenses. After you meet the eligibility and occupancy requirements, you may use the funds for renovations, moving costs, or any other related purpose.

Not for the same property. Each member is entitled to claim HPAS once in their career on separate qualifying purchases. If you purchase jointly with a non-resident family member, Defence may pro-rate your payment according to your ownership share.

No. The property must be your principal place of residence for at least 12 months. After this period, you are free to rent out the property or use it as an investment without repaying the HPAS amount.

For HPAS purposes, a home is considered purchased at settlement, not at contract exchange. You will need to provide proof of settlement when submitting your claim.

Yes. You must occupy the home for 12 months as your principal place of residence to retain the HPAS benefit.

It depends on your personal and posting circumstances. HPAS is best used when you can meet the 12-month occupancy requirement and plan to stay in the area longer term. If your postings are uncertain, it may be wise to wait until your situation is more stable.

To apply for HPAS, complete and submit Form AC970 via the ServiceConnect portal or Forms portal on the Defence Protected Network (DPN). You must meet all eligibility requirements, including serving for at least 12 months in your posting location at the time of signing the contract.

Yes. Many members stack HPAS with HPSEA reimbursements, their state FHOG and DHOAS for ongoing subsidy. Check each scheme’s rules. 

Once you have met the 12-month occupancy rule, you may rent out the property or use the equity to fund your next purchase. This approach allows members to build property wealth while remaining compliant with Defence requirements.

Common pitfalls include:

  • Buying outside your posting locality.
  • Failing to meet the 12-month occupancy rule.
  • Lodging incomplete or incorrect documents.
  • Attempting to claim twice as a couple.
  • Using HPAS during a short posting that doesn’t allow enough time to meet eligibility.
HPAS Explained 2023 | Maximise Your Home Purchase Assistance Scheme Benefit

View Video Transcript

Now, I’m going to jump into the first couple here: HPAS and HPSEA, which are the ones that provide you with HPAS. It is a lump sum that comes towards you. It is for full-time service members only, so make sure that if you are a reserve member, you are aware of that. However, if you are doing continuous full-time service for 12 months or more as a reserve member, then you can use HPAS as well.

Now, this one I do like because it does come to you as a lump sum before you even actually have to go through and purchase property. In some instances, it is $16,949 before tax. However, once you have your tax taken out, for most people, it’s going to end up about eleven thousand dollars, which can be quite beneficial if it’s going towards your cash buffer after you make your purchase.

The way that it does work is that it has to be your own home purchase while you’re in the Defense Force and in your current location, in your current posted location. Now, what it can also be, if you have received a posting order and you are about to move, it can be in your future posting location as well. So, you can look a little bit forward to where you’re going to make that purchase.

With HPAS, it is only payable once per defence member. So, what this means is it’s one of those things where a lot of people get itchy trigger fingers, and they think, ‘I’ve got to go use my HPAS, I’ve got to go get that $16 or $17,000.’ However, what we do say is just take a beat, take a step back, have a bit of a look at the situation, think about it for a little while, because buying your own home is more of a lifestyle decision as opposed to an investment decision or an investment mindset. However, if using HPAS in an area that is also a good investment location, if you are posted to that location, then it can also be beneficial. So, we’re not against using HPAS, it’s just have a bit of a thought about where you’re using it, and that’s why we say do not pull the trigger too early.

One of the other elements with HPAS as well is that if you do have a defence partner, you are both entitled to HPAS. You can’t both use HPAS on that one purchase. However, if you buy one house in a current posted location, one member uses that HPAS, and then when you get posted to another location, you can keep that property there, then the other defence member of that couple can use their HPAS to buy another property. So, you do get to double dip on HPAS, unlike the first homeowner grants throughout Australia, if your partner has used one of the first-time owner grants, then you’re not entitled. With HPAS, fortunately, both members are still entitled to use it.

Now, it is normally paid within six weeks of your application. So, depending on what you’re purchasing, if you’re buying land and building a house, and the land doesn’t register for four, five, six months’ time or something like that, you can apply for your HPAS as soon as you have your executed land and build contracts. It might take about 16 weeks or so to receive your HPAS, so you could have that benefit there sitting in your bank account before you’ve even settled on the land.

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Disclaimer:

This information is not to be taken as legal or financial advice, please see the disclaimer page for full information.