Selling in the ACT? What You Should Know About First-Home Buyer Concessions

1. ACT First-Home Buyer Concessions: The Home Buyer Concession Scheme (HBCS)

Unlike other states, the ACT no longer offers a First Home Owner Grant (FHOG). Instead, first-home buyers access benefits through the Home Buyer Concession Scheme (HBCS), which provides stamp duty exemptions or reductions based on eligibility.

a) No New FHOG — Concession Replaces the Old Grant

The FHOG in the ACT ceased for new transactions from 1 July 2019. The Home Buyer Concession Scheme (HBCS) replaced it and now serves as the primary form of first-home buyer support.

Under HBCS, eligible buyers can receive either a full stamp duty exemption or a concessional rate depending on the property’s value, income, and eligibility criteria.

b) What HBCS Offers and the Thresholds

• Full stamp duty exemption for eligible first-home buyers on properties (homes or land) valued up to $1,000,000.
• Concessional duty rate for homes valued between $1,000,001 and $1,455,000 — $6.40 per $100 for the amount exceeding $1M.
• Above $1,455,000, a flat duty rate applies, meaning reduced benefits for buyers.

To qualify, total household income must fall below $250,000 (for households with no dependents), increasing by $4,600 per dependent child. Buyers also must not have owned property in the past 5 years.

Occupancy rules require at least one buyer to live in the home continuously for 12 months, starting within 12 months of settlement.

✅ Seller implications:

• If your property is priced at or under $1,000,000, eligible first-home buyers can purchase it completely duty-free.
• Homes priced between $1M and $1.455M still attract some buyers using concessional rates.
• Higher-end homes above $1.455M benefit less — most first-home buyers will be ineligible.

Marketing Tip:
Highlight “Eligible first-home buyers pay no stamp duty up to $1,000,000” in your listing headline to attract attention and differentiate your property.

2. What This Means for Sellers in the ACT

a) Price Tactically Around Key Thresholds

• If your home’s value is near $1,000,000, consider pricing slightly under to stay within the full exemption band.
• Even properties between $1M–$1.455M can appeal to buyers due to partial concessions.
• Homes priced higher than $1.455M will attract fewer first-home buyers due to limited savings.

b) Emphasise “Stamp Duty Exemption / Reduced Duty” in Marketing

Use clear, benefit-driven phrases such as:

• “Eligible first-home buyers pay no stamp duty (up to $1,000,000)”
• “Reduced stamp duty under the ACT Home Buyer Concession Scheme”
• “Concessional rates apply between $1M and $1.455M”

Always include a small disclaimer such as “subject to buyer eligibility under the ACT Home Buyer Concession Scheme.”

c) Understand Your Buyer Segments

• Homes under $1M attract the most demand due to full exemption eligibility.
• Properties in the $1–$1.455M range appeal to slightly higher-income buyers still eligible for partial concessions.
• Buyers with incomes above $250,000 or those who’ve owned property in the past 5 years are ineligible — target these separately.

d) Timing, Contracts, and Contract Dates

The date the agreement for transfer is entered into determines eligibility — not the settlement date. If listing near a rule change, ensure contract timing aligns with eligibility periods.

Work with your conveyancer or agent to ensure the correct transaction date and disclosure details are in place.

e) Pitfalls & Disclaimers to Watch For

• Avoid promising “duty-free” unless your property genuinely qualifies.
• Eligibility depends on income, 5-year ownership history, and occupancy — not all buyers will qualify.
• Failure to occupy within 12 months or live in the property for 1 continuous year can void the concession.
• Always include disclaimers such as “Buyers should confirm eligibility with the ACT Revenue Office.”

3. Key Takeaway for ACT Sellers

The ACT’s Home Buyer Concession Scheme (HBCS) is a powerful tool for first-home buyers — and a strategic advantage for sellers who understand how to position their listings around it. By pricing smartly near the $1M exemption threshold and highlighting duty savings, you can attract a larger pool of motivated buyers and create more competition for your property.

Pro Tip:
In your marketing, lead with: “Eligible first-home buyers pay no stamp duty under ACT’s Home Buyer Concession Scheme” — it’s simple, clear, and instantly increases enquiry rates.

Conclusion

ACT’s property market rewards sellers who understand its unique incentives. The Home Buyer Concession Scheme has effectively replaced the FHOG, and with the right marketing, you can leverage it to appeal to more buyers and achieve faster results.

Need help positioning your ACT property for first-home buyers? Contact No Agent Property — we’ll help you highlight eligibility, attract qualified buyers, and sell with confidence.