ACT Stamp Duty 2026-27: HBCS No Income Test, $1.02M Exemption & Zero Foreign Surcharge

The Australian Capital Territory's Home Buyer Conveyance Scheme is the most structurally progressive stamp duty framework in the country as of 2026-27, and from 1 July 2026 it becomes even more accessible: the income test that previously restricted eligibility is abolished entirely. Under the HBCS, owner-occupier buyers pay no conveyance duty on properties with a dutiable value up to $1,020,000, with partial duty applying above that threshold. The ACT imposes no foreign purchaser conveyance duty surcharge — foreign buyers pay the same duty as local purchasers. There is no First Home Owner Grant in the ACT, which was abolished in July 2019.

Data in this article is sourced from the ACT Revenue Office and reflects the rates and policies operative from 1 July 2026. This analysis covers the HBCS owner-occupier concessional scale, the investor scale, the removal of the income test, the absence of a foreign conveyance surcharge, and the interaction with the ACT land tax surcharge for foreign owners.

The Home Buyer Conveyance Scheme: How It Works

The ACT's HBCS replaces standard conveyance duty for eligible owner-occupier purchases with a concessional rate structure. The defining feature is a zero-duty band that extends to $1,020,000 in dutiable value — meaning a buyer purchasing a property at or below this threshold pays no conveyance duty whatsoever. This is the highest duty-free threshold of any Australian jurisdiction and represents a potential saving of tens of thousands of dollars compared to purchasing the same-value property in New South Wales, Victoria, or Queensland.

For properties above $1,020,000, the HBCS applies a partial duty calculated on the excess above the threshold. The ACT Revenue Office publishes the specific marginal rate applied to the excess, and while the exact rate varies, the effective overall duty rate remains well below standard investor-scale rates. The scheme is available to buyers who intend to occupy the property as their principal place of residence and who are natural persons — it is not available to companies or trusts unless specific exemptions apply.

The investor scale operates alongside the HBCS and applies to purchases that do not meet owner-occupier criteria. Under the investor scale, conveyance duty is calculated at standard rates without the HBCS concession. Buyers should verify their eligibility for the HBCS with a conveyancer before committing to a purchase, as the difference in duty between the owner-occupier concessional scale and the investor scale can be substantial.

Income Test Removed from 1 July 2026

A landmark reform took effect from 1 July 2026: the income test that previously restricted HBCS eligibility is removed entirely. Prior to this date, access to the scheme was subject to an income cap, which varied by household composition and was indexed periodically. The removal means the HBCS is now purely value-based — any eligible owner-occupier purchasing a property up to $1,020,000 in dutiable value receives the full zero-duty benefit, regardless of income.

This reform brings the ACT closer to a universal stamp duty abolition for owner-occupiers within the value range that covers the majority of Canberra dwellings. The median house price in Canberra was approximately $960,000 as of mid-2026, meaning the HBCS covers properties at and around the median. Buyers above the median still receive partial relief, with duty applying only to the portion exceeding $1,020,000.

The removal of the income test eliminates a significant administrative barrier and broadens the pool of eligible buyers. Previously, dual-income professional households in Canberra could exceed the income cap and be excluded from the scheme despite purchasing at price points well within the HBCS threshold. From 1 July 2026, those households are fully eligible.

No Foreign Purchaser Conveyance Surcharge

The ACT is one of only two Australian jurisdictions — alongside the Northern Territory — that does not impose a surcharge on conveyance duty for foreign purchasers. This means a foreign buyer acquiring a residential property in Canberra pays the same conveyance duty as an Australian citizen or permanent resident at the same purchase price.

This structural absence of a foreign surcharge makes the ACT a distinctly cost-competitive jurisdiction for foreign buyers when compared with states that charge 7% to 9% surcharges. A foreign buyer purchasing a $1,000,000 property in the ACT under the HBCS (assuming owner-occupier eligibility) pays zero conveyance duty. The same foreign buyer purchasing at the same price point in New South Wales would face a 9% surcharge of $90,000 on top of standard duty of approximately $40,000, for a total duty exposure of roughly $130,000.

It is important to distinguish between conveyance duty (stamp duty on transfer) and land tax. The ACT does impose a foreign ownership land tax surcharge of 0.75% per annum on the unimproved value of residential land owned by foreign persons. This is an ongoing annual charge, not a one-off transaction cost, and applies to the land component of the property. While this adds an ongoing holding cost for foreign owners, the absence of an upfront conveyance surcharge remains a meaningful advantage at the time of purchase.

No First Home Owner Grant

The ACT abolished the First Home Owner Grant in July 2019 as part of its broader stamp duty reform program. Unlike every other Australian state, the ACT provides no FHOG to first home buyers. The policy rationale was that the HBCS zero-duty threshold delivers greater total benefit than a one-off grant, particularly given Canberra's relatively high property prices. A first home buyer purchasing at $800,000 saves approximately $20,000 to $30,000 in avoided duty under the HBCS — far exceeding the $10,000 FHOG available in most other states.

First home buyers in the ACT can also access the Commonwealth Home Guarantee Scheme, which operates independently of territory-based grants and concessions. The HGS allows eligible first home buyers to purchase with a 5% deposit and no lenders mortgage insurance, subject to price caps. Combined with zero conveyance duty under the HBCS, this can substantially reduce the upfront cash required to enter the Canberra property market.

Owner-Occupier Concessional vs Investor Scale

The ACT maintains a two-tier conveyance duty system that creates a significant cost differential between owner-occupier and investor purchases. The owner-occupier concessional scale, administered through the HBCS, delivers the zero-duty band up to $1,020,000 and partial duty above. The investor scale applies standard conveyance duty rates to all purchases not qualifying for the concessional treatment.

The practical effect of this dual-scale system is material. An investor purchasing a $600,000 property in the ACT pays standard conveyance duty at the investor rate, while an owner-occupier at the same price point pays zero under the HBCS. This creates an effective tax incentive for owner-occupation and a structural cost penalty for residential property investment in the territory, consistent with the ACT Government's long-standing policy objective of improving housing affordability for owner-occupiers.

Buyers intending to initially occupy the property but later convert it to an investment should note that the HBCS eligibility is assessed at the time of purchase based on the intended use. The ACT Revenue Office may review compliance where a property is advertised for rent shortly after settlement or where the owner fails to occupy within a reasonable period. Buyers uncertain about their eligibility status should seek advice from a licensed conveyancer or the ACT Revenue Office directly.

Duty Calculation Examples

To illustrate the practical difference between the owner-occupier and investor scales, consider the following scenarios based on 2026-27 rates as published by the ACT Revenue Office.

An owner-occupier purchasing a property at $900,000 dutiable value pays zero conveyance duty under the HBCS, as this falls within the $1,020,000 threshold. An investor purchasing the same $900,000 property pays standard conveyance duty at the investor rate, which applies progressively through the general ACT scale.

An owner-occupier purchasing at $1,200,000 pays partial duty on the $180,000 excess above the $1,020,000 threshold. The exact duty depends on the marginal rate applied to the excess, but is substantially lower than the full investor-scale duty on a $1,200,000 purchase. The HBCS thus continues to deliver meaningful relief even above the zero-duty band, though the benefit diminishes as the property value increases.

Pensioner Duty Concession

The ACT provides a pensioner duty concession scheme that reduces conveyance duty for eligible pensioners purchasing a home to occupy as their principal place of residence. The concession operates alongside the HBCS and may provide additional relief or a reduction in duty for pensioner buyers who do not qualify under the owner-occupier concessional scale. Eligibility requires the buyer to hold a current Pensioner Concession Card or a Department of Veterans' Affairs Gold Card and to meet income and asset tests as specified by the ACT Revenue Office.

Internal Links for the Next Decision

Once you understand the ACT's conveyance duty framework, the next step is to calculate your position and compare it with alternatives. Key internal resources on Arrivau:

· Use the /calculators/stamp-duty/ calculator to estimate your conveyance duty under the HBCS or investor scale based on your purchase value and buyer profile · Read the /stamp-duty-comparison-states-2026/ article to compare ACT duty side-by-side with all seven other Australian jurisdictions at the same property price · Explore the /act-home-loans/ page for mortgage options tailored to ACT property purchases, including Canberra-specific lender policies · See /stamp-duty-australia-2026-27-comparison/ for a broad overview of all states' and territories' duty scales and concessions · Refer to /foreign-buyer-stamp-duty-australia-2026/ for the full guide on foreign buyer surcharges, including the ACT's unique zero-conveyance-surcharge position

Information Sources

· ACT Revenue Office — Home Buyer Conveyance Scheme rates and eligibility, effective 1 July 2026 · ACT Government 2026-27 Budget Papers — HBCS reform announcement removing the income test · ACT Revenue Office — Foreign ownership land tax surcharge guidance · ACT Revenue Office — Pensioner duty concession scheme parameters

FAQ

Q: What is the HBCS and how much duty do I save under it?

A: The Home Buyer Conveyance Scheme is the ACT's owner-occupier duty concession. For properties with a dutiable value up to $1,020,000, you pay zero conveyance duty. Above $1,020,000, you pay partial duty on the excess amount only. The scheme is available to natural persons purchasing a home to occupy as their principal place of residence. From 1 July 2026, there is no income test — eligibility is purely value-based.

Q: Does the ACT charge a foreign buyer stamp duty surcharge?

A: No. The ACT imposes no foreign purchaser surcharge on conveyance duty. Foreign buyers pay the same duty as Australian citizens and permanent residents. However, a foreign ownership land tax surcharge of 0.75% per annum applies to the unimproved land value, which is an ongoing annual charge rather than a one-off transaction cost.

Q: Is there a First Home Owner Grant in the ACT?

A: No. The ACT abolished the FHOG in July 2019. The policy rationale is that the HBCS zero-duty band up to $1,020,000 delivers greater total benefit than a one-off cash grant. First home buyers can still access the Commonwealth Home Guarantee Scheme for low-deposit purchasing.

Q: What is the difference between the owner-occupier concessional scale and the investor scale?

A: The owner-occupier concessional scale (HBCS) provides zero duty up to $1,020,000 and partial duty above. The investor scale applies standard conveyance duty rates to all purchases not qualifying for the HBCS. Investors pay full duty on the entire dutiable value, creating a substantial cost differential between owner-occupier and investor purchases.

Q: Can I use the HBCS if I'm planning to rent out the property later?

A: The HBCS eligibility is assessed at the time of purchase based on your intended use. You must intend to occupy the property as your principal place of residence. If you purchase under the HBCS and later convert to an investment, the ACT Revenue Office may review your circumstances, particularly if the conversion occurs shortly after settlement. Seek advice from a licensed conveyancer if your plans are uncertain.

General Information Disclaimer

This article is general information only and is not personal financial, tax, legal or credit advice. Stamp duty rates, thresholds and concessions can change without notice. Arrivau Pty Ltd (ABN 81 643 901 599) provides credit assistance as an ASIC Credit Representative, CRN 530978. Consider your objectives, financial situation and needs, and seek licensed advice before making a property decision. For an assessment of your borrowing position, speak with an Arrivau consultant — we respond within one business day.