ACT Stamp Duty 2026-27: HBCS No Income Cap, No Foreign Surcharge and Conveyance Duty

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The Australian Capital Territory (ACT) imposes conveyance duty on the transfer of residential and other dutiable property under the Duties Act 1999 (ACT). The ACT uses a two-tier rate structure, with an owner-occupier concessional scale that is lower than the investor scale. For the 2026–27 financial year, the most significant development is the removal of the income test from the Home Buyer Concession Scheme (HBCS), effective 1 July 2026. The HBCS now provides a full conveyance duty exemption on properties with a dutiable value up to $1,020,000, with a partial concession above that threshold, and there is no income cap restricting eligibility. The ACT is also one of only two Australian jurisdictions with no foreign purchaser conveyance duty surcharge (the foreign surcharge in the ACT is 0.75% per annum on land tax only, not on the transfer). The ACT abolished the First Home Owner Grant (FHOG) in July 2019 and has not reintroduced it. For comparison with other state and territory duty regimes, see this site’s articles on Queensland, Western Australia, South Australia, and Tasmania. For broader tax context, see Australia Income Tax 2026-27.

Owner-Occupier and Investor Rate Scales

The ACT assesses conveyance duty using two separate rate scales, depending on whether the purchaser intends to occupy the property as their principal place of residence.

The owner-occupier concessional scale applies to purchasers who will live in the property as their principal place of residence. This concessional scale is lower than the investor scale and is available to Australian citizens, permanent residents, and certain other eligible purchasers. The concessional rates are structured progressively and a purchaser who qualifies for the owner-occupier scale generally pays less duty than an investor at the same purchase price.

The investor scale applies to properties that will not be owner-occupied, including investment properties and purchases by entities. The rates under this scale are higher at each value band.

The ACT Revenue Office publishes the current rate scales annually. As at July 2026, purchasers should consult the most recent rate notice from the ACT Revenue Office for the specific bracket values, as these are subject to indexation and may be adjusted by determination under the Duties Act 1999 (ACT). The dutiable value is generally the higher of the consideration paid and the unencumbered market value of the property.

Home Buyer Concession Scheme (HBCS)

The Home Buyer Concession Scheme (HBCS) is the ACT’s principal mechanism for reducing conveyance duty for eligible home buyers. The scheme provides:

  • Full exemption: No conveyance duty on properties with a dutiable value up to $1,020,000, provided the purchaser intends to occupy the property as their principal place of residence.
  • Partial concession: For properties with a dutiable value above $1,020,000, a partial concession applies on a sliding scale, with the concession amount reducing as the property value increases. The concession phases out at a higher threshold (the exact value of which is set by the ACT Revenue Office).

Removal of the Income Test (1 July 2026)

A major policy change took effect on 1 July 2026: the income test for the HBCS has been removed. Previously, eligibility for the full HBCS concession was subject to an income cap that limited access to the scheme. From 1 July 2026, there is no income cap — the HBCS is available to any eligible home buyer regardless of their income, subject only to the dutiable value thresholds and ownership and residency requirements.

This change makes the HBCS significantly more accessible. A household previously excluded by the income test can now qualify for a full exemption on a property up to $1,020,000, or a partial concession above that threshold. The removal of the income test means that the primary eligibility gateways are now:

  • The purchaser (or at least one purchaser) must be an Australian citizen or permanent resident.
  • At least one purchaser must occupy the property as their principal place of residence for a continuous period of at least 12 months, commencing within 12 months of settlement.
  • The purchaser (and their spouse or domestic partner) must not have owned other residential property in the two years preceding the transaction.
  • The property’s dutiable value must be within the applicable HBCS threshold.

The HBCS covers both new and existing homes, unlike the first-home relief schemes in Queensland and South Australia, which are limited to new homes (or, in Queensland’s case, extend only a partial concession to existing homes).

No Foreign Purchaser Conveyance Duty Surcharge

The ACT is one of only two Australian jurisdictions — alongside the Northern Territory — that does not impose a foreign purchaser surcharge on conveyance duty. In all other states and the Northern Territory, a foreign buyer acquiring residential property must pay a surcharge of between 7% and 9% on top of the standard duty. The ACT does not apply any such surcharge to the transfer itself.

However, foreign owners of residential property in the ACT are subject to a land tax surcharge of 0.75% per annum, which is levied on the unimproved value of the land as part of the annual land tax assessment. This is a recurring annual charge, distinct from the one-off conveyance duty at the point of purchase.

For a foreign person considering a residential property purchase, the absence of an upfront conveyance duty surcharge may reduce the initial purchase cost compared with other jurisdictions, but the ongoing annual land tax surcharge should be factored into the total holding cost over the period of ownership.

No First Home Owner Grant

The ACT abolished the First Home Owner Grant (FHOG) in July 2019 as part of a broader tax reform package that phased out conveyance duty in favour of increased land tax. There is no FHOG available in the ACT for the 2026–27 financial year, and no announcement has been made of its reintroduction.

The policy rationale is that the HBCS (combined with the general owner-occupier concessional rate scale) provides sufficient upfront relief for home buyers, and the long-term tax reform direction is toward lower conveyance duty overall.

Conveyance Duty and the ACT’s Long-Term Tax Reform

The ACT has been engaged in a long-term program of tax reform that progressively reduces conveyance duty while increasing the land tax base. This reform, underway since 2012, means that conveyance duty rates in the ACT have been trending downward over time, with the revenue replaced by higher annual general rates (land tax). The removal of the HBCS income test from 1 July 2026 is consistent with this direction — broadening access to upfront relief while the long-term shift toward land-based taxation continues.

Purchasers should be aware that the annual general rates (land tax) on a property they purchase may be higher than in other jurisdictions, reflecting the ACT’s deliberate policy trade-off between lower upfront duty and higher recurrent property taxation.

Frequently Asked Questions

Do I pay conveyance duty as a first-home buyer in Canberra?

Under the HBCS, a property with a dutiable value up to $1,020,000 is fully exempt from conveyance duty for eligible buyers. Above that threshold, a partial concession applies on a sliding scale. Since 1 July 2026, there is no income cap on the HBCS — eligibility depends on the property’s dutiable value and your ownership and residency circumstances, not your income.

Is there a foreign buyer surcharge on stamp duty in the ACT?

No. The ACT does not impose a foreign purchaser surcharge on conveyance duty. This distinguishes it from all other Australian states except the Northern Territory. However, foreign owners of ACT residential property pay a land tax surcharge of 0.75% per annum on the unimproved land value.

Can I get the FHOG in the ACT?

No. The ACT abolished the First Home Owner Grant in July 2019 and has not reintroduced it. Home buyer support is provided through the HBCS and the owner-occupier concessional rate scale.

Does the HBCS cover existing homes or only new homes?

The HBCS covers both new and existing homes. Unlike South Australia’s first-home relief (which is limited to new homes) or Queensland’s (which offers a full cap-free exemption only on new homes), the ACT’s HBCS applies to any residential property, new or established, up to the $1,020,000 threshold, provided the eligibility criteria are met.

What are the conveyance duty rates for an investor in the ACT?

Investors in the ACT pay conveyance duty under the investor scale, which is higher than the owner-occupier concessional scale. The specific rates are set by the ACT Revenue Office and are subject to annual indexation. As at July 2026, an investor should consult the current rate determination published by the ACT Revenue Office for the applicable bracket values. The HBCS does not apply to investment properties.

Data Sources and Currency

This article draws on the official rates, thresholds, and eligibility rules published by the ACT Revenue Office and the governing legislation. Key sources include:

Data current as at July 2026. Conveyance duty rates, HBCS thresholds, and land tax surcharges are set by the ACT Government and may be amended. Verify current rates with the ACT Revenue Office or a licensed conveyancer.

Disclaimer

This article provides general information only and does not constitute financial, tax, or legal advice. Individual duty liability depends on the specific circumstances of each transaction, including the purchaser’s residency status, prior property ownership, the intended use of the property, and the applicable rate scale. Confirm all figures and eligibility with the ACT Revenue Office or a licensed conveyancer or solicitor.