The Australian Capital Territory has one of the most distinctive stamp duty regimes in the country. It operates two separate duty scales — a concessional owner-occupier scale and a higher investor scale — and it is the only jurisdiction alongside the Northern Territory that imposes no foreign buyer surcharge on conveyance duty. The ACT’s Home Buyer Concession Scheme (HBCS) provides a full stamp duty exemption on properties with a dutiable value up to $1,020,000, with a partial concession above that threshold. A major reform took effect on 1 July 2026: the income test previously applied to HBCS applicants has been removed entirely, meaning first home buyers of any income level can now access the concession. The ACT abolished the First Home Owner Grant in July 2019 and has not replaced it. All figures in this article are sourced from the ACT Revenue Office and are current as at July 2026.
ACT Conveyance Duty: Two Scales for Owner-Occupiers and Investors
The ACT applies different conveyance duty rates depending on whether the buyer intends to occupy the property as their principal place of residence or hold it as an investment. Owner-occupiers benefit from a concessional scale with lower rates, while investors and non-occupying buyers pay the general (higher) scale.
The owner-occupier concessional scale applies to buyers who occupy the property as their principal place of residence within 12 months of settlement and reside there continuously for at least 12 months. This scale produces materially lower duty than the investor scale across all price brackets, particularly in the $400,000 to $1,000,000 range that covers most Canberra homes.
The investor and non-occupying buyer scale applies to all other residential purchases, including investment properties and homes bought by buyers who will not live in the property. Buyers should confirm their eligibility for the concessional scale with their conveyancer before settlement, as misclassification can result in a duty reassessment and penalty interest.
The ACT Revenue Office provides an online duty calculator that computes the payable amount for both scales based on the property’s dutiable value and the buyer’s declared occupancy intention.
Home Buyer Concession Scheme: No Duty Up to $1,020,000, Income Test Removed
The ACT’s flagship first home buyer support is the Home Buyer Concession Scheme. From 1 July 2026 two elements define the scheme: a full stamp duty exemption on properties with a dutiable value of $1,020,000 or below, with a partial concession for values above that threshold, and the complete removal of the income test.
Before 1 July 2026 the HBCS was means-tested: applicants were required to have a total gross household income below published thresholds that varied depending on the number of dependent children. The removal of this income test means that first home buyers at any income level can now access the concession — a significant expansion that brings the ACT in line with the most generous first home buyer jurisdictions in the country.
For a Canberra home priced at $800,000, the HBCS eliminates conveyance duty entirely. On a $1,200,000 home, the buyer receives a partial concession that still materially reduces the duty compared to the standard owner-occupier scale. At $1,020,000 and below the duty is zero.
Eligibility requires that at least one buyer is an Australian citizen or permanent resident, that no buyer has previously owned residential property anywhere in Australia, and that the property is occupied as the principal place of residence within 12 months of settlement for a continuous period of at least 12 months.
No Foreign Buyer Surcharge on Conveyance Duty
The ACT does not impose a foreign buyer surcharge on conveyance duty. This makes the ACT and the Northern Territory the only Australian jurisdictions without an additional stamp duty levy on foreign purchasers of residential property. In New South Wales a foreign buyer purchasing an $800,000 home pays an additional 9% surcharge of $72,000; in Victoria the 8% surcharge adds $64,000. In the ACT the same foreign buyer pays the standard conveyance duty with no surcharge at all.
The ACT does impose a land tax surcharge of 0.75% per annum on the unimproved value of residential land owned by foreign persons, but this is an annual ongoing charge separate from the upfront conveyance duty. Foreign buyers should factor this annual land tax surcharge into their holding cost calculations, but the absence of an upfront conveyance duty surcharge represents a significant saving relative to most other jurisdictions.
Foreign buyers are not eligible for the HBCS and must pay the investor scale of conveyance duty regardless of their occupancy intentions.
No First Home Owner Grant
The ACT abolished the First Home Owner Grant on 1 July 2019 and has not introduced a replacement. This is unique among Australian jurisdictions — every other state and territory offers a FHOG of between $10,000 and $50,000 for eligible new home purchases. The ACT Government’s policy rationale was that the stamp duty concession provides a larger and more broadly applicable benefit to first home buyers than a cash grant, particularly given Canberra’s higher median property values.
In practice the combination of the HBCS (zero duty up to $1,020,000) and the absence of a FHOG means ACT first home buyers receive support through the duty system rather than through a cash grant. For a first home buyer at the $800,000 level the stamp duty saving is substantially larger than the $10,000 FHOG offered in most other jurisdictions.
FAQ
Q: I earn a high income — can I still get the HBCS concession from 1 July 2026? A: Yes. The income test that previously applied to the Home Buyer Concession Scheme has been removed from 1 July 2026. First home buyers of any income level can now access the full exemption on properties up to $1,020,000, provided they meet the other eligibility criteria including the residence requirement.
Q: Does the HBCS cover off-the-plan apartments in Canberra? A: Yes. The HBCS applies to off-the-plan purchases based on the dutiable value at the time of settlement. Off-the-plan buyers may also benefit from the ACT’s off-the-plan duty concession, which allows certain construction costs to be deducted from the dutiable value, potentially bringing the property into or closer to the $1,020,000 HBCS threshold.
Q: If I buy with a partner who has previously owned property, do I lose the HBCS? A: To qualify for the HBCS, all buyers must meet the eligibility criteria including the requirement that no buyer has previously owned residential property in Australia. If any one buyer on the title has previously owned property, none of the buyers can access the HBCS, though the owner-occupier concessional scale may still apply.
Q: As a foreign buyer, do I pay any surcharge on conveyance duty in the ACT? A: No. The ACT does not levy a foreign buyer surcharge on conveyance duty. Foreign buyers pay the investor scale of conveyance duty but no additional surcharge. However a land tax surcharge of 0.75% per annum applies to foreign owners of residential land.
Q: When is conveyance duty payable in the ACT? A: Conveyance duty is payable within 90 days of the date of the transfer (generally the settlement date). Your conveyancer or solicitor will arrange lodgement and payment as part of the settlement process. Late payment incurs interest at the market rate plus a premium, which as at July 2026 is above 10% per annum.
Sources
- ACT Revenue Office, Home Buyer Concession Scheme, revenue.act.gov.au (effective from 1 July 2026)
- ACT Revenue Office, Conveyance Duty Rates, revenue.act.gov.au (2026-27)
- ACT Revenue Office, Conveyance Duty — General Rates, revenue.act.gov.au (current as at July 2026)
- ACT Revenue Office, Foreign Ownership of Land — Land Tax Surcharge, revenue.act.gov.au
- ACT Legislation Register, Duties Act 1999, as amended
This article provides general information only and does not constitute financial, legal, or tax advice. Conveyance duty obligations and concessions depend on individual circumstances and are subject to legislative change. Consult the ACT Revenue Office or a qualified conveyancer before making a purchase decision.