Quick answer: The ACT does not offer a cash First Home Owner Grant. Instead, the Home Buyer Concession Scheme (HBCS) provides stamp duty relief with the highest exemption threshold in Australia — $1,020,000 (from July 1, 2025). Maximum saving: $35,238. The scheme is strictly income-tested: combined gross income of all buyers and domestic partners must be under $250,000/year (adjusted for dependents). You must not have owned residential property in Australia in the past 5 years. Both new and established homes qualify. Apply through your conveyancer at settlement using concession code HBC24 via the ACT Revenue Office. Updated April 2026 based on ACT Revenue Office data.
The ACT replaced the traditional FHOG cash grant with stamp duty relief in 2019 (ACT Revenue Office). If you’re earning under $250,000/year (or adjusted for dependents), you pay zero stamp duty on properties up to $1,020,000. That threshold is nearly double what NSW offers ($800,000) and significantly higher than VIC ($600,000), QLD, or WA ($500,000). If you’re building in Canberra and need financing, read our construction loans vs home loans guide to understand the difference.
But unlike those states, the ACT scheme is income-tested. High earners don’t qualify. If you’re a dual-income couple both on solid government salaries, you might be over the threshold before you realize it.
Home Buyer Concession Scheme (HBCS)
This replaced the old FHOG. Instead of $10,000 cash, you get stamp duty relief—potentially worth much more.
Stamp Duty Thresholds (From July 1, 2025)
| Property Value | Stamp Duty | What You Save |
|---|---|---|
| $0 – $1,020,000 | $0 (full exemption) | Up to ~$32,000 |
| $1,020,001 – $1,455,000 | $6.40 per $100 over $1,020,000 | Concessional rate |
| $1,455,001+ | Standard rate less $35,238 | Maximum concession |
Maximum concession: $35,238 (2025-26 financial year)
For a $1,000,000 property, you’re saving around $32,000 in stamp duty (ACT Revenue Office). That’s triple what the old $10,000 cash grant ever offered. But only if you meet the income test.
Income Thresholds (From July 1, 2024)
This is where people get caught out. The income test applies to all buyers plus domestic partners.
| Dependent Children | Maximum Total Income |
|---|---|
| 0 | $250,000 |
| 1 | $254,600 |
| 2 | $259,200 |
| 3 | $263,800 |
| 4 | $268,400 |
| 5+ | $273,000 |
“Total income” means: Combined gross income of all buyers and their domestic partners (ACT Revenue Office). Not just the people on the title — anyone in a relationship with a buyer counts.
ACT offers Australia's highest stamp duty exemption threshold
But strict income testing means high earners miss out
Who Is Eligible for the ACT Home Buyer Concession?
Tick every box or you don’t qualify:
- No property ownership in last 5 years — Stricter than most states. If you owned residential property anywhere in Australia within the past 5 years, you’re out. This includes investment properties, inherited property, or a home you sold years ago.
- Over 18 years of age (all buyers and domestic partners)
- Income test — All buyers and domestic partners combined must be under the threshold for your dependent child count
- Australian citizen or permanent resident (at least one applicant)
- Principal place of residence — Move in within 12 months, live there for at least 6 consecutive months
- Not a company or trust — Must be natural persons
Important: “Domestic partner” is defined broadly. If you’re in a relationship (married, de facto, or living together), that person’s income counts—even if they’re not on the title.
What Properties Qualify?
The ACT scheme applies to all property types:
- Vacant land (if you’re building on it)
- New homes (never been lived in)
- Established/existing homes
- Off-the-plan purchases
- Units, townhouses, apartments
This is different from states like SA or WA, which only offer relief on new homes. In the ACT, established homes qualify—if you meet the income test.
How Much Can You Save?
Let’s look at real numbers across different scenarios.
Example 1: Building in Gungahlin (Land + Build)
| Scenario | Building (Land $350K + Build $450K) |
|---|---|
| Total property value | $800,000 |
| Standard stamp duty | ~$24,400 |
| Stamp duty with HBCS | $0 (full exemption) |
| Total saving | $24,400 |
If you bought this land separately and signed a building contract, you’d pay zero stamp duty on the land (under the $1,020,000 threshold). The building contract itself isn’t dutiable. See our Canberra building costs guide for suburb-by-suburb construction pricing.
“The ACT’s $1,020,000 threshold is practical for Canberra’s market, where median house prices sit around $850,000–$950,000. Most first home buyers in suburbs like Gungahlin, Belconnen, and Tuggeranong will fall comfortably under the threshold and pay zero stamp duty — saving $25,000–$30,000.” — Emma Whitfield, Property Finance Analyst at BuildBudget
Example 2: Buying Established Home in Belconnen
| Scenario | Buying Established $950,000 |
|---|---|
| Standard stamp duty | ~$30,500 |
| Stamp duty with HBCS | $0 (full exemption) |
| Total saving | $30,500 |
Established homes qualify in the ACT. As long as you’re under the $1,020,000 property threshold and meet the income test, you pay zero.
Example 3: High-Value Property in Dickson
| Scenario | Property $1,200,000 |
|---|---|
| Standard stamp duty | ~$38,600 |
| Stamp duty with HBCS | ~$11,520 (concessional rate) |
| Total saving | $27,080 |
Even above the $1,020,000 threshold, you still get concessional rates up to $1,455,000. The benefit tapers but doesn’t disappear immediately.
Calculate your ACT home costs
See total project cost including stamp duty savings and site-specific estimates for Canberra.
How to Apply
The ACT uses a self-assessment system. You don’t apply before settlement—you declare eligibility when you lodge the transaction.
Step 1: Complete Buyer Verification Declaration (BVD)
This is the form where you declare:
- You meet the 5-year property ownership rule
- Your combined income is under the threshold
- You intend to occupy as principal residence
- All other eligibility criteria are met
Step 2: Conveyancer Lodges with ACT Revenue Office
Your conveyancer or mortgage broker handles the lodgement. They submit the BVD along with the transaction details.
Concession code: HBC24 (for transactions from July 1, 2024)
Step 3: Stamp Duty Calculated at Settlement
If you qualify, stamp duty is calculated at the concessional rate (or $0 if under $1,020,000). You pay the reduced amount—or nothing—at settlement.
Processing time: Immediate if lodged correctly. The concession applies automatically once the BVD is submitted.
Source: Loan Market Canberra.
Timeline Example
| Stage | When | What Happens |
|---|---|---|
| Make offer | Week 1 | Property $900,000 in Belconnen |
| Exchange contracts | Week 4 | Sign contract, pay deposit |
| Conveyancer lodges BVD | Week 5 | HBC24 concession code applied |
| Settlement | Week 8-12 | Pay $0 stamp duty (normally ~$29,000) |
| Move in | Within 12 months | Must occupy for 6 consecutive months |
Other ACT Concessions
Off-the-Plan Unit Duty Exemption (RZ1)
If you’re buying an off-the-plan unit (not a house), there’s an additional exemption running until June 30, 2026:
- 100% duty exemption on off-the-plan units up to $1 million property value
- This is separate from the HBCS—you can’t stack them, but RZ1 often gives better relief for unit buyers
Source: ACT Housing Budget Statement 2024-25.
Pensioner Duty Concession
- Full concession on first $1 million of property value (from July 1, 2024)
- For eligible pensioners (Commonwealth Seniors Health Card holders, Age Pension, Disability Support Pension)
Disability Duty Concession
- Full exemption for people with severe disabilities on properties up to $1,020,000 (from July 1, 2025)
- Carers also eligible under certain conditions
People Fleeing Family Violence
- Can access HBCS regardless of previous property holdings or alleged perpetrator’s income (from July 1, 2024)
- Removes the 5-year ownership ban and income test for eligible applicants
Source: ACT Treasury Budget Statement 2024-25.
No Foreign Buyer Surcharge
The ACT is one of only two jurisdictions (along with Northern Territory) that does not impose a foreign buyer stamp duty surcharge.
NSW, VIC, QLD, WA, SA all charge 7-8% additional stamp duty for foreign buyers. The ACT charges standard rates only.
If you’re a foreign buyer purchasing a $1 million property in Canberra, you pay the same stamp duty as an Australian citizen (or $0 if eligible for HBCS).
Common Questions
Why doesn’t the ACT offer a cash grant?
Policy decision. In 2019, the ACT Government replaced the $10,000 FHOG cash grant with stamp duty relief. The rationale was that stamp duty exemption delivers more value—especially for higher-priced properties—and the government was already transitioning away from stamp duty toward land tax over a 20-year period.
For a $1 million property, the stamp duty saving (~$32,000) is triple what the old cash grant offered. But the trade-off is strict income testing.
What if my partner has owned property before but I haven’t?
You don’t qualify. The 5-year ownership rule applies to all buyers and domestic partners. If your partner owned a property 3 years ago, you’re both disqualified—even if only your name is going on the new title.
This is the strictest ownership test in Australia. Most states only look at whether you personally have owned property. The ACT looks at your relationship status.
Can I get the concession if I’m buying land to build on?
Yes. Vacant land purchases qualify under HBCS. If you’re buying a $350,000 block in Gungahlin to build on, you pay $0 stamp duty (assuming you meet the income test).
The building contract itself isn’t subject to stamp duty, so your total upfront saving is the full stamp duty on the land.
What happens if I sell before 6 months?
The ACT can claw back the concession. You declared you’d occupy as principal residence for 6 consecutive months within 12 months of settlement. If you sell or rent it out before meeting that requirement, you’re liable for the full stamp duty amount you saved.
Exception: If you have genuine hardship (medical, family breakdown, job relocation), contact ACT Revenue Office before selling. They have discretion to waive the clawback in exceptional circumstances.
How does the income test work for couples?
It’s combined gross income of all buyers and domestic partners. If you’re earning $140,000 and your partner earns $120,000, your combined income is $260,000—over the $250,000 threshold with no dependent children. You don’t qualify.
The income thresholds adjust for dependent children: each dependent child adds $4,600 to the threshold (ACT Revenue Office). So a couple with 2 kids gets a $259,200 limit instead of $250,000.
“The income test catches a lot of Canberra couples off guard. Two public servants on $130,000 each are already over the $250,000 threshold. If you’re close to the limit, check whether salary sacrifice, super contributions, or timing your purchase around a lower-income year could help you qualify.” — James Thornton, Construction Cost Analyst at BuildBudget
How does this compare to other states?
Stamp duty exemption thresholds for first home buyers:
- ACT: $1,020,000 (highest in Australia, but income-tested)
- NSW: $800,000 (no income test)
- VIC: $600,000 (no income test)
- QLD: $500,000 (no income test)
- WA: $500,000 (no income test)
- SA: Unlimited for new homes only, $0 for established (no income test)
The ACT has the highest threshold, but you need to earn under $250,000 to access it. NSW has the second-highest threshold ($800,000) with no income test—making it more accessible for high earners.
What’s this about land tax?
The ACT is gradually phasing out stamp duty and replacing it with annual land tax over a 20-year period (started 2012, ending ~2032). This means:
- Stamp duty rates are lower than they used to be (and getting lower)
- But annual land tax is higher (and getting higher)
For your principal residence, you’re exempt from land tax. So first home buyers get the benefit of reduced/zero stamp duty upfront without paying annual land tax on the property they live in. For full stamp duty details, see our ACT stamp duty guide.
“The ACT’s stamp duty-to-land-tax transition creates a unique opportunity for first home buyers right now. You get reduced stamp duty upfront, and as long as you live in the property, you don’t pay annual land tax. But factor in the land tax when you eventually turn it into an investment — it’s higher than other states.” — David Park, Housing Market Researcher at BuildBudget
If you later turn the property into an investment, you’ll pay annual land tax at ACT rates.
Run the numbers with our free building cost calculator to see how stamp duty savings affect your total project cost. For a national overview, see how much it costs to build a house across Australia.
Information current as of April 2026, based on ACT Revenue Office, Loan Market Canberra, and Savings.com.au data. Eligibility rules can change mid-year — check with ACT Revenue Office or a qualified conveyancer before making decisions based on these numbers.
Key Takeaways
- ACT offers stamp duty relief (not cash grant) with maximum saving of $35,238 — highest in Australia
- Full exemption on properties up to $1,020,000 (double NSW’s $800K threshold, triple VIC’s $600K)
- Strict income test: $250,000/year base (adjusted $4,600 per dependent child) for all buyers plus domestic partners
- Concession applies to new and established homes, vacant land, and off-the-plan purchases
- Application automatic through conveyancer at settlement (no separate application required)
- First home buyer must occupy as principal place of residence for at least 12 months
Data Sources
All information sourced from official government agencies:
- ACT Revenue Office — Home Buyer Concession Scheme, accessed April 2026
- ACT Government — Stamp duty rates and thresholds, 2025-26 financial year
- Loan Market Canberra, Savings.com.au, Feasly — HBCS eligibility and application guidance, 2025-2026
