Most home buyers need to pay stamp duty when they buy their property.
This duty, also known as conveyance duty, is essentially a tax on buying certain assets. Stamp duty can be expensive – so expensive, in fact, that it’s usually the largest upfront cost home buyers face other than their home deposit.
That said, most owner-occupier buyers in the ACT pay a lower rate of stamp duty than the general rate, so long as their home is valued at under $1,455,000. The ACT government has also exempted all owner-occupiers who purchase off-the-plan units valued under $600,000 from stamp duty.
On top of this, the ACT government operates two schemes that allow certain categories of home buyers to qualify for a discounted rate of stamp duty on their purchase. In fact, depending on the value of the home you’re buying, you may not even have to pay stamp duty at all.
We explore the ACT government schemes that offer stamp duty concessions and exemptions to help you work out both whether you’re eligible and how much you could save.
Home buyer concession scheme
The Home buyer concession scheme provides a stamp duty exemption or concession for many first-home buyers. All properties under $1 million in the ACT are eligible for the scheme.
The scheme comes with strict income limits, which exclude some buyers.
Who’s eligible for the Home buyer concession scheme?
To be eligible for the Home buyer concession scheme, you need to meet both general and income requirements.
General eligibility requirements
- You must be at least 18 years old.
- You must not have owned property within the last two years. This includes your spouse or partner.
- At least one buyer must live continuously in the property for at least one year, starting within 12 months of settlement or the date an occupancy certificate is issued.
You can apply for an exemption from some of these requirements in limited circumstances. You can read about these on the Revenue ACT website.
Income requirements
To be eligible for a stamp duty exemption, the total gross income of all home buyers and their partners must be below the following income caps. These are measured based on income received over the full financial year before the transaction date.
| Number of dependent children | Total gross income threshold |
| $170,000 | |
| 1 | $173,330 |
| 2 | $176,660 |
| 3 | $179,990 |
| 4 | $183,320 |
| 5 or more | $186,650 |
How much could you save with the Home buyer concession scheme?
The scheme offers a full exemption from stamp duty, up to the maximum concession amount of $34,790 (compared to the owner/occupier rate of duty). It also applies to both new and established homes, as well as vacant residential land.
The exact amount you’ll save depends on the value of your home. However, here are some examples.
| Home value (established home) | Duty usually payable | Duty usually payable for owner occupiers | Duty payable under the Home buyer concession scheme | Saving (up to) |
| $550,000 | $13,560 | $11,400 | $0 | $13,560 |
| $750,000 | $22,200 | $20,040 | $0 | $22,200 |
| $1,000,000 | $36,950 | $34,790 | $0 | $36,950 |
Pensioner duty concession scheme
The Pensioner duty concession scheme provides a stamp duty concession to eligible pensioners. It’s aimed at helping older ACT residents move from their current residence into a home that’s more suited to their needs.
The scheme applies to established and new properties, as well as vacant land and off-the-plan purchases.
Who’s eligible for the Pensioner duty concession grant?
To be eligible for the scheme, you must meet the following eligibility criteria.
General eligibility
You must meet the following general requirements.
- To receive a full concession, the property you’re buying needs to be valued at less than $550,000 if it’s a new or established property or $373,000 if it’s vacant land.
- To receive a partial concession, the property you’re buying needs to be valued at less than $765,000 if it’s a new or established property or $450,000 if it’s vacant land.
- You need to sell your current home within 12 months of buying the new home.
- At least one buyer must be an eligible pensioner.
- You cannot previously have received the ‘Over 60s Home Bonus’.
Eligible pensioner
To be an eligible pensioner, you must:
- receive an age pension from Centrelink or the Department of Veteran Affairs (DVA)
- receive a disability pension from Centrelink and be over 50 years old, or
- have held a DVA Gold Card for at least one year.
Home ownership and residency requirements
You must own your existing home within Australia. You cannot own any other property unless it’s the home you’re purchasing. The sale and purchase of the properties need to happen within 12 months of each other (in either order).
You must also live in the new home for at least a year, starting within 12 months of settlement or the date an occupancy certificate is issued. However, the Commissioner for ACT Revenue can exempt you from these requirements in some circumstances.
How much can you save with the Pensioner duty concession grant?
The amount you can save with the Pensioner duty concession depends on the value and type of property you’re buying.
New or established property or off-the-plan purchases
Most purchases, other than vacant land, receive the following concessions under the scheme.
| Property value | Amount of concession |
| Up to $550,000 | Full concession. No stamp duty payable. |
| $550,001 to $765,000 | $9.70 for every $100 or part thereof over $550,000 |
| More than $765,000 | Full duty payable. No concession |
This means you could be entitled to the following stamp duty savings based on the value of the home you’re buying.
| Property value | Duty usually payable | Duty payable for owner occupiers | Stamp duty payable with concession | Saving (up to) |
| $550,000 | $13,560 | $11,400 | $0 | $13,560 |
| $650,000 | $17,880 | $15,720 | $9,700 | $8,180 |
| $750,000 | $22,200 | $20,040 | $19,400 | $2,800 |
Residential land
| Land value | Amount of concession |
| Up to $373,000 | Full concession. No stamp duty payable. |
| $373,001 to $450,000 | $9.75 for every $100 or part thereof over $373,000 |
| More than $450,000 | Full duty payable. No concession |
This means you could be entitled to the following stamp duty savings based on the value of the vacant land you’re buying.
| Land value | Duty usually payable | Duty payable for owner occupiers | Stamp duty payable with concession | Saving (up to) |
| $350,000 | $6,300 | $4,140 | $0 | $6,300 |
| $400,000 | $8,000 | $5,840 | $2,362.50 | $5,637.50 |
| $440,000 | $9,750 | $7,540 | $6,352.50 | $3,397.50 |
Want more?
You can read more about stamp duty in the ACT on the ACT Revenue Office website.
This article was originally published on
10 Oct 2023 at 10:20am
but has been regularly updated to keep the information current.