What first home owner incentives are there in the ACT?

Getting your foot on the property ladder can be both exciting and daunting, and it’s important to know the support options available. If you’re looking to purchase a first home in the ACT, then the good news is that you may be eligible for financial support from the ACT Government. Big savings can be available that could help you buy a first home sooner.

The ACT is one of Australia’s most expensive property markets, so as a first home buyer, it’s worth tapping into any assistance available, and you may well be wondering how the first home buyers grant ACT works.

Is there a First Home Owners Grant in the ACT?

The situation for first home buyers in the ACT is a little different to other states and territories, where aspiring first home buyers can be eligible for a cash payment.

The First Home Owner Grant in the ACT was scrapped from 1 July 2019, and replaced with the Home Buyer Concession Scheme. The ACT Government says this change was designed to help more home buyers, and offer more flexibility around your choice of home.

Instead of providing a cash payment as was the case with the former First Home Owner Grant in the ACT, home buyers can now save up to $35,910 on stamp duty when they buy a home, the government says.

Home Buyer Concession Scheme eligibility

As we’ve seen, the Home Buyer Concession Scheme has replaced the First Home Owner Grant in the ACT. To be eligible for the Scheme, you need to meet a variety of conditions.

All properties in the ACT are eligible for the Home Buyer Concession Scheme. It applies to vacant land, as well as new and established homes and there are no conditions around where you buy or how much you pay for your home. Unlike the old grant system, you also don’t necessarily need to be a first home buyer to qualify, although you can’t be a current homeowner.

This added flexibility of the Home Buyer Concession Scheme can give you more freedom around your choice of home compared to the former First Home Owner Grant.

To be eligible for the Home Buyer Concession Scheme and pay zero stamp duty on your first home in the ACT, you need to meet certain conditions:

• All buyers of the home or land must be at least 18 years old, and
• All buyers (including you and your spouse or partner, if applicable) must not have owned any other property in the last two years.

Eligibility for the ACT’s Home Buyer Concession Scheme also depends on how much you earn. Income limits apply, and these vary according to the number of dependent children you have. It’s worth noting, ‘total’ income must include your spouse/partner’s income even if they won’t be the owner of the home.

The income limits for the Home Buyer Concession Scheme are shown in the table below. As a guide, if you have no children, you can earn up to $170,000 in the past financial year to be eligible to pay zero stamp duty on your first home in the ACT.

If you have, say, two children, the income limit rises to $176,660. Remember, this is gross (before-tax), annual income.

If you meet all these conditions, at least one buyer must live in the home continuously for at least one year, either from the time the property settles (if you’re buying an established home), or from the date a newly built home has been signed off as ready to live in.

How to apply for the Home Buyer Concession Scheme in the ACT

To claim the Home Buyer Concession in the ACT, head to the ACT Revenue Office’s website to complete a Buyer Verification Declaration. This will give you a concession code number to get the ball rolling with savings on stamp duty.

Are first home buyers in ACT exempt from stamp duty?

The First Home Owners Grant ACT has been replaced by savings on stamp duty (also known as conveyance duty) since 1 July 2019. Under the new Home Buyer Concession scheme, eligible homebuyers can pay either no stamp duty or a reduced rate, depending on their circumstances including the value of the home they’re purchasing.

The savings on stamp duty available through the Home Buyer Concession Scheme ACT can be significant for first home buyers. At the time of writing, these savings would mean a home purchased by an eligible buyer for $1 million or less would generally attract no stamp duty, while buyers of more expensive homes would pay a reduced rate according to the ACT Revenue Office’s conveyance duty calculator.

You can find out more about the thresholds on the ACT Revenue website.