Stamp duty is the biggest single cost most Canberra first home buyers face after the deposit itself. On a $700,000 home, the standard ACT duty bill comes in around $27,000, cash that has to be ready at settlement, on top of the deposit. The ACT Home Buyer Concession Scheme exists to take that bill out of the picture entirely for eligible buyers. Here’s how it works in 2026, who qualifies, how much it saves, and the parts most buyers get wrong.
What the HBCS actually is
The HBCS is an ACT government scheme that reduces or wipes out stamp duty for eligible first home buyers. Unlike the federal First Home Guarantee (which works on the deposit side), the HBCS works on the duty side, what you pay at settlement on top of the property price.
The scheme effectively replaced the old First Home Owner Grant for established properties. Most Canberra first home buyers now access support through the HBCS, not the FHOG. The scheme covers all property types: new builds, established homes, houses, units, and off-the-plan. It’s income-tested, so eligibility is based on household income over the 12 months before settlement.
Who qualifies, the three eligibility tests
All three tests must be met for HBCS eligibility:
1. First home buyer status
You, and any partner buying with you, must never have owned residential property in Australia before. This includes investment properties and previous interests in any residential dwelling.
2. Residency requirement
You must move into the property within 12 months of settlement and live there as your principal residence for at least 12 continuous months. Investment-only purchases don’t qualify.
3. Income threshold
The scheme is income-tested against gross household income for the 12 months before the transaction. Thresholds vary by household composition, singles, couples, and households with dependents each have different limits. As of 2026, the threshold sits in the $170,000+ gross household income range, with additional allowances for dependents.
Exact thresholds are revised by the ACT Revenue Office, confirm current figures before relying on any number.
How much you actually save
The HBCS provides a tiered concession, full or partial, depending on where your income sits relative to the threshold. Under the threshold = full concession (zero stamp duty in most cases). Slightly over = partial concession that tapers down to zero benefit above a certain income.
Worked example, $700,000 Canberra home, fully eligible buyer:
|
Cost |
Without HBCS |
With full HBCS |
|
Stamp duty |
~$27,000 |
$0 |
|
Other settlement costs |
~$3,000 |
~$3,000 |
|
Total settlement costs |
~$30,000 |
~$3,000 |
That’s $27,000 of cash you don’t need to find at settlement, usually the single biggest dollar-value lever available to a Canberra first home buyer.
→ Related: How Much Deposit Do You Really Need to Buy a House?
The five mistakes that lose the concession
Most lost HBCS savings come from these patterns:
- Marginal income overshoots. A bonus or overtime in the prior 12 months pushes gross income just over the threshold. The test uses gross income, not taxable, easy to underestimate.
- Joint-applicant ownership history. If one of two joint buyers has ever owned property in Australia, the entire purchase loses HBCS, not just that buyer’s portion.
- Investment intent. Properties bought with intent to rent immediately don’t qualify, regardless of how the contract is structured.
- Breaching the residency requirement. Moving out within 12 months (work relocation, separation, anything) triggers a clawback.
- Missing the income evidence. Without 12 months of pay records, the conveyancer can’t apply the concession at settlement.
A broker who works in the ACT will catch these before contracts are signed, not after.
Stacking HBCS with the First Home Guarantee
The HBCS sits alongside the federal First Home Guarantee (5% deposit, no LMI). Eligible buyers can use both: First Home Guarantee for the deposit pathway + HBCS for the stamp duty saving.
This combination is usually the strongest position a Canberra first home buyer can be in, small deposit, no LMI, no stamp duty. It’s also the position fewest buyers actually achieve, because nobody walks them through both schemes at the same time. Worth knowing whether you qualify for both before you start.
What to do before you sign a contract
Confirm HBCS eligibility before contracts are signed. Three steps:
- Get your gross household income figure for the last 12 months.
- Confirm no prior property ownership for either buyer.
- Run the eligibility through a broker or directly with the ACT Revenue Office.
If you’d like the personalised version (your exact HBCS eligibility, how it stacks with First Home Guarantee, and the total cash-needed number for your situation), book a 15-minute call with Harbir.
Or call 0461 117 777 | Email info@creditstar.com
Frequently Asked Questions
Q1. What is the ACT Home Buyer Concession Scheme?
Ans. It’s an income-tested stamp duty concession that can eliminate or reduce stamp duty for eligible Canberra first home buyers, often saving tens of thousands at settlement.
Q2. Who qualifies for the HBCS in 2026?
Ans. First home buyers who haven’t previously owned property in Australia, will live in the property for at least 12 months, and whose gross household income sits under the threshold (around $170,000+ depending on household composition).
Q3. How much can you save with the HBCS?
Ans. Full HBCS eligibility can wipe out the entire stamp duty bill, on a $700,000 home, that’s around $27,000 saved. The exact saving scales with property value and income tier.
Q4. Is the HBCS the same as the First Home Owner Grant?
Ans. No. The FHOG was a cash grant; the HBCS is a stamp duty concession applied at settlement. The HBCS effectively replaced the FHOG for established properties in the ACT.
Q5. Can I use HBCS and the First Home Guarantee together?
Ans. Yes, the two schemes stack. The First Home Guarantee covers the deposit side (5% deposit, no LMI), and the HBCS covers the stamp duty side. Most eligible buyers can use both.
Q6. Does HBCS apply to off-the-plan properties?
Ans. Yes. The HBCS applies to all property types, new builds, established homes, units, and off-the-plan, provided the other eligibility tests are met.
Q7. What if my income goes slightly over the threshold?
Ans. A partial concession may still apply on a tapered basis. Once you’re well above the threshold, the concession reduces to zero. A broker can run the exact number for your income.
Q8. Do I have to live in the property?
Ans. Yes. You must move in within 12 months of settlement and live there as your principal residence for at least 12 continuous months. Investment-only purchases don’t qualify.
Q9. How do I apply for the HBCS?
Ans. There’s no separate application form, your conveyancer applies the concession at settlement, using your income documentation and contract details. Confirm eligibility before signing the contract.
Q10. What happens if I sell or move out within 12 months?
Ans. The ACT Revenue Office can claw back the stamp duty saving. Some genuine hardship exceptions exist, but the default is repayment of the concession.
This guide is general information only and doesn’t take into account your personal situation. HBCS thresholds and eligibility rules change, confirm current figures with the ACT Revenue Office or a broker before relying on any specific number. For advice specific to your circumstances, book a call with Harbir Singh, Credit Representative 506564 of BLSSA Pty Ltd ACN 117 651 760, Australian Credit Licence 391237.
