First Home Buyer Grant ACT (2025) How to Maximise Duty Savings with the home Buyer Concession Scheme

Looking to buy your first home in Canberra or somewhere in ACT? While the traditional First Home Owner Grant (FHOG) no longer exists here, there’s the Home buyer Concession Scheme (HBCS) which well makes up for it with up to $34,270 in savings for new homes. 

What Replaced the FHOG in the ACT?

• As of 1st of July 2019 the First Home Owner Grant was discontinued in ACT. 
• What has taken its place was the Home Buyer Concession Scheme (HBCS), which provides transfer-duty exemptions or concessions, depending on property value and income. 
• This scheme applied to all types of buyers, ranging from first home buyers, established homes, new homes, vacant land and off-the-land unit

Who is Eligible for the HBCS in the ACT? . 

• All buyers (this includes partners) must be aged 18+. 
• No property ownership in Australia in the past two years. 
• At least one applicant must be an Australian citizen or permanent resident. 
• Owner-occupancy is a requirement - must live in the home for 1 continuous year, start date must be within 12 months of settlement or completion. 

Income Caps as follows : 

• Those with no children must make $250,000 or less
• One Child : $254,600 or less
• Two Children : $259,200 or less (thresholds adjust annually)

Stamp Duty Saving with HBCS 

• Full exemption on owner-occupied property up to $1,200,000 (2025 - 2026)
• Partial Concessions for values over $1,020,000, capped at around $35,270. 
• This means potential savings of nearly $36,000 in stamp duty for homes valued around $1 million. 

How to Apply for the ACT Concession Schemes

• Make sure to fill out a Buyer Verification Declaration (BVD) during property transfer time. 
• You must enter the correct concession code (e.g. HBC 24) to trigger the duty exemption or concession. 
• Ensure you provide supporting documentation such as : proof of income, ID, declaration of residency. 
• Off-the-plan unit agreements signed from 1 July 2025 may qualify up to $1.02m under expanded exemption rules. 

Most Common Mistakes to Avoid in ACT 

• Thinking there is a separate FHOG - removed since 2019. 
• Not meeting the income threshold (this is strictly enforced).
• Overlooking the special rules for off-the-plan units vs land or houses. 
• Failing to include the concession code before registering title transfer. 
• Misunderstanding the residency rules - you must live in for one year continuously. 

Pro Tips for First Home Buyers in ACT 

• Buy a property under $1 million to easily access full duty exemption. 
• Use accurate concession code and lodge before the settlement. 
• If your income exceeds the cap, you are still eligible for partial concession. 
• Always plan your occupancy timing as you need 1 year of residency within 12 months of completion or settlement. 
• Using a broker or solicitor is the easiest way to navigate HBCS and stamp duty. 

Example: How Michael Bought His First Home in Tuggeranong

Michael is a 28 year-old teacher, he bought a $850,000 established home in Tuggeranong

Here is the breakdown :

• His income was under the threshold , and has not owned a property in the prior 2 years. 
• Used HBCS code on BVD before title registration
• Paid Zero stamp duty (purchase price under $1 million qualified for exemption) 
• Became owner-occupier by moving in after 3 months.
• Saved over $26,400 in stamp duty. 
• Was able to put a 10% deposit allowing him to avoid LMI. 

Is the ACT Concession Scheme Right for First Home Buyers?

It definitely can! While ACT no longer has a traditional FHOG, HBCS benefits still can offer savings in major stamp duty relief of up to $35,000 for qualifying buyers under $1 million. 

The keys to remember are to qualify early, apply before title registration, meet income and residency requirements and you’re set to save thousands. If you want to check what you qualify for, check out our free calculator at www.homebuyerhelp.com.au for all our free resources and step-by-step guides to buy a home.