First Home Owner Grant ACT | Home Buyer Concession Scheme Guide 2026

First Home Buyer Incentives in the ACT: What Replaced the FHOG

The Australian Capital Territory is unique among Australian states and territories in having abolished the traditional First Home Owner Grant back in 2019. Rather than maintaining a cash grant, the ACT Government redirected that funding into a more targeted stamp duty concession scheme — the Home Buyer Concession Scheme (HBCS) — which provides significantly greater financial benefits to eligible buyers. Lagos Financial helps first home buyers in the ACT and surrounds understand and access these concessions.

The ACT Home Buyer Concession Scheme (HBCS)

The Home Buyer Concession Scheme is the ACT’s flagship first home buyer incentive, providing a full exemption from stamp duty (conveyance duty) for eligible first home buyers. Unlike many other states’ programs, the ACT scheme is means-tested — designed to target support at low-to-moderate income buyers.

Key Features of the HBCS

  • Full stamp duty exemption for eligible buyers purchasing a home valued at up to $607,500 (as at 2026 — this threshold is reviewed annually)
  • Property purchase price threshold is indexed to Canberra’s property market
  • Applies to both new and established homes, unlike the old FHOG
  • Income-tested: single buyers must have a gross household income under $170,000; couples and families must have income under $227,000
  • All applicants must be first home buyers (never previously owned residential property in Australia)
  • At least one applicant must be an Australian citizen or permanent resident
  • You must occupy the property as your principal place of residence within 12 months

Why the ACT Abolished the FHOG

The ACT Government’s rationale for abolishing the FHOG in 2019 was that universal cash grants (not means-tested) tend to inflate property prices by increasing purchasing power across all buyers. By shifting to a means-tested stamp duty concession, the ACT aimed to better target assistance at buyers who genuinely need it, while reducing upward pressure on property prices.

For eligible buyers, the HBCS actually provides greater value than the old FHOG: on a $550,000 property, the stamp duty exemption saves approximately $19,250 compared to a $7,000 cash grant (what the FHOG was worth before abolition).

How Much Can You Save with the HBCS?

Stamp duty (conveyance duty) in the ACT is calculated on a sliding scale. For a property valued at $500,000, the standard duty payable would be approximately $14,950. For a property at the $607,500 threshold, standard duty would be approximately $20,000+. Under the HBCS, eligible buyers pay zero.

Other ACT Initiatives for First Home Buyers

Land Rent Scheme

The ACT’s Land Rent Scheme allows eligible buyers to purchase a home on ACT Government-owned land by paying rent on the land rather than purchasing it outright. This significantly reduces the amount of capital required upfront, making home ownership more accessible. Buyers can elect to purchase the land at a later date.

Pensioner Duty Concession

Eligible pensioners in the ACT purchasing a home as their principal residence may also access duty concessions — separate from the HBCS — subject to income and asset tests.

How to Access the ACT Home Buyer Concession Scheme

Applications for the HBCS are made through the ACT Revenue Office at the time of lodging your conveyance (transfer) documents. Your conveyancer or solicitor typically handles this as part of the settlement process. You will need to provide evidence of your income (recent tax returns or income assessments), proof of citizenship/residency, and confirmation that you have not previously owned property in Australia.

If you are considering buying a property in the ACT, Lagos Financial can help you understand your eligibility and structure a home loan to complement these concessions.

Comparing the ACT to Other States

While the ACT does not offer a cash grant like other states, its means-tested stamp duty exemption often delivers more value to eligible buyers than the grants available elsewhere. The combination of no stamp duty and Canberra’s relatively strong wages means that many ACT first home buyers are in a strong financial position to enter the market — provided they fall within the income thresholds.

Frequently Asked Questions — ACT First Home Buyers

Does the ACT have a First Home Owner Grant?

No. The ACT abolished its First Home Owner Grant in 2019 and replaced it with the Home Buyer Concession Scheme, which provides a full stamp duty exemption for eligible first home buyers. The ACT was the first Australian jurisdiction to phase out the FHOG.

What is the income limit for the ACT Home Buyer Concession Scheme?

As at 2026, the income threshold is $170,000 per year for a single buyer and $227,000 for a couple or family. These thresholds are reviewed periodically. All gross household income (including from rental properties or investments) is included in the assessment.

Can I use the ACT HBCS to buy an investment property?

No. The HBCS requires you to occupy the home as your principal place of residence. It cannot be used for investment property purchases.

What is the maximum property price for the ACT HBCS?

The 2026 threshold is $607,500. This is indexed and reviewed annually to reflect changes in the Canberra property market. Properties above this threshold do not qualify for the concession.

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About the Author
Victor Lagos is a licensed mortgage broker (ACL 546774) and founder of Lagos Financial, with close to 20 years of finance industry experience since beginning his career at Bluestone Mortgages in 2006. A member of the Finance Brokers Association of Australia (FBAA) since 2015 and the Australian Financial Complaints Authority (AFCA — 98399), Victor helps Australians build wealth through tailored home loan and property investment strategies, working with 60+ lenders nationwide. Last reviewed: March 2026.

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