The ACT is the only Australian jurisdiction with zero foreign purchaser conveyance duty surcharge, and from 1 July 2026 the Home Buyer Concession Scheme income test has been removed — meaning any first home buyer purchasing up to $1,020,000 pays zero conveyance duty regardless of income. These two structural advantages set Canberra apart from every other state and territory. Stamp duty is an upfront settlement cost lenders do not finance, so it must be saved and paid separately alongside your deposit. Use our stamp duty calculator to run your own numbers.
ACT Conveyance Duty: Two Scales for 2026-27
The ACT Revenue Office applies two distinct rate scales for residential conveyance duty — one for owner-occupiers purchasing a principal place of residence (the concessional scale), and one for investors and all other buyers (the general scale). Both scales are progressive, with higher-value properties attracting higher marginal rates.
The owner-occupier concessional scale delivers materially lower duty than the general scale at every price point. A Canberra buyer purchasing a property to live in as their main residence pays less conveyance duty than an investor buying the same property. This two-scale structure is unique among Australian states and territories — most jurisdictions use a single rate scale and apply concessions as separate schemes rather than baked-in rate structures.
Worked Example: $650,000 Canberra Townhouse — Owner-Occupier
Under the owner-occupier concessional scale, a $650,000 principal place of residence attracts approximately $12,630 in conveyance duty. This compares favourably to NSW where the same-priced home would cost $17,437 and Victoria where it would be $34,070 for a non-first-home buyer.
Worked Example: $900,000 Canberra Apartment — Investor
Under the general (investor) scale, a $900,000 investment property attracts approximately $25,200 in conveyance duty. The differential between the investor and owner-occupier scales widens at higher price points, making the ACT's two-tier system a meaningful cost driver for investment property buyers.
Home Buyer Concession Scheme: Income Test Removed from July 2026
The HBCS is the ACT's flagship first home buyer benefit — and it has just become significantly more accessible. From 1 July 2026, the income test that previously capped eligibility has been completely removed. There is now no income limit of any kind: if you are buying your first home in the ACT to live in, you can access the HBCS regardless of how much you earn.
The benefit itself is substantial. Properties with a dutiable value up to $1,020,000 pay zero conveyance duty under the HBCS. Above $1,020,000, a partial concession applies, with the concession phasing out as the price rises. This $1.02 million threshold comfortably covers the majority of Canberra's apartment and townhouse market, and even reaches into the lower end of the standalone house market in many suburbs.
Worked Example: $800,000 First Home Purchase in Belconnen
Dutiable value is $800,000 — below the $1,020,000 HBCS full-exemption threshold. Conveyance duty payable: $0. Compare this to the standard owner-occupier concessional scale where duty would be approximately $17,500. The saving is the full amount, retained for deposit, settlement costs, or furnishing the home.
Worked Example: $1,050,000 First Home Purchase
This sits slightly above the $1,020,000 threshold and receives a partial concession. The precise phase-out rate can be confirmed through the ACT Revenue Office calculator, but the key point is that the concession does not fall off a cliff — buyers above the threshold still receive meaningful relief compared to paying the full concessional scale rate.
The HBCS applies to both new and established homes, and to vacant land intended for building an owner-occupied home. There is no restriction to new builds.
No FHOG — But the HBCS More Than Compensates
The ACT abolished its First Home Owner Grant in July 2019. Unlike Victoria, NSW, and Queensland — which offer $10,000 FHOG payments — the ACT provides no cash grant to first home buyers. Instead, the policy philosophy channels all first home support through stamp duty relief via the HBCS, with the argument that eliminating conveyance duty at the point of purchase delivers more financial impact than a small cash grant that gets consumed by the same stamp duty it's meant to offset.
For a first home buyer purchasing at $800,000, the HBCS saves approximately $17,500 in duty — significantly more than the $10,000 FHOG available in most other jurisdictions. At $1,000,000, the saving approaches $25,000, far exceeding any FHOG value. The trade-off is that the benefit only materialises if you are buying — there is no cash payment available for a very low-value purchase where stamp duty is already minimal.
No Foreign Purchaser Conveyance Surcharge — The ACT's Structural Advantage
This is the ACT's most distinctive feature and one that is consistently underappreciated. Every other Australian state and territory that levies conveyance duty — NSW (9%), Victoria (8%), Queensland (8%), Western Australia (7%), South Australia (7%), and Tasmania (8%) — imposes a foreign purchaser additional duty surcharge calculated on the full dutiable value of residential property. The ACT does not.
The ACT does levy a 0.75% per annum foreign owner surcharge on land tax for residential properties owned by foreign persons. But this is an annual holding cost, not an upfront transaction cost. At settlement, the foreign buyer in the ACT pays exactly the same conveyance duty as an Australian citizen or permanent resident — zero surcharge.
Worked Example: Foreign Buyer Purchasing a $900,000 Canberra Apartment
Under the ACT investor (general) scale, conveyance duty is approximately $25,200. There is no foreign surcharge added. Total duty: $25,200.
Now compare the same $900,000 purchase by a foreign buyer in NSW. Standard NSW transfer duty: $34,687. Foreign surcharge at 9%: $81,000. Total NSW duty: $115,687.
The ACT saves the foreign buyer $90,487 on this single transaction — purely from the absence of the conveyance surcharge. Over a portfolio of multiple properties or a higher-value purchase, the difference compounds dramatically. For more on foreign buyer financing options, see our foreign buyer home loans guide.
The land tax surcharge of 0.75% per annum on the unimproved land value is the ongoing cost to consider. On a Canberra apartment with an unimproved land value component of approximately $100,000, the annual foreign owner land tax surcharge would be roughly $750 — a fraction of NSW's 5% annual surcharge on land tax. For a deeper look at ACT first home buyer financing, read our TAS, ACT & NT first home buyer loans overview.
How ACT Stamp Duty Affects Your Deposit Requirement
Canberra's median dwelling price sits around $875,000. For a non-first-home owner-occupier buying at this price point under the concessional scale, conveyance duty is approximately $20,000. Adding legal fees, building inspection, and loan application costs brings total upfront cash required — beyond the deposit — to roughly $24,000.
For a first home buyer at the same price point using the HBCS, stamp duty is $0. Total upfront cash beyond deposit drops to approximately $4,000 — just the conveyancing and inspection costs. This is the practical difference the HBCS makes: it strips the single largest settlement cost out of the equation entirely.
For a foreign investor buying the same $875,000 property, the ACT's absence of a conveyance surcharge means total duty remains approximately $23,500 under the general scale — versus $115,000+ in NSW or $108,000+ in Victoria. The ACT's policy environment makes it the most cost-effective entry point in Australia for foreign residential property investment by a wide margin.
Use our stamp duty calculator to model your specific scenario before talking to a lender.
Data Source
All rates, thresholds, and concession rules in this article are sourced from the ACT Revenue Office, verified as at July 2026. The removal of the HBCS income test took effect from 1 July 2026. The ACT's foreign owner land tax surcharge of 0.75% per annum and the absence of a foreign purchaser conveyance duty surcharge are confirmed against ACT Revenue Office publications. The FHOG abolition date of July 2019 and the HBCS $1,020,000 threshold are current as published.
FAQ
Is the ACT foreign buyer advantage real — no surcharge at all on conveyance?
Yes. The ACT imposes zero foreign purchaser additional duty on the conveyance (transfer) of residential property. The only foreign-owner levy is a 0.75% annual land tax surcharge, which is a holding cost, not a transaction cost. At settlement, a foreign buyer pays identical conveyance duty to a local buyer.
Does the HBCS income test removal mean anyone can get zero stamp duty?
Any first home buyer purchasing a property with a dutiable value up to $1,020,000 can receive a full conveyance duty exemption under the HBCS, regardless of income. The buyer must occupy the property as their principal place of residence. Above $1,020,000, a partial concession applies. There is no income cap.
Why did the ACT abolish the FHOG?
The ACT abolished the $7,000 FHOG in July 2019, replacing it with an expanded HBCS that delivered stamp duty relief instead. The policy rationale was that eliminating conveyance duty provides a larger financial benefit than a small cash grant for most buyers, and that duty relief is more efficient because it is delivered at the point of highest cash need — settlement.
Does the HBCS apply to off-the-plan purchases?
Yes. The HBCS applies to off-the-plan purchases provided the buyer intends to occupy the property as their principal place of residence. The dutiable value is based on the contract price or unimproved land value as assessed, and the $1,020,000 threshold applies to this value.
How does the ACT investor scale compare to other jurisdictions?
The ACT's general (investor) conveyance duty scale is competitive at most price points but is not the lowest. However, for foreign investors, the total cost — general scale duty with zero foreign surcharge — is dramatically lower than any other jurisdiction. The absence of the 7-9% surcharge that other states impose outweighs any difference in base rate scales.
Is there any stamp duty on vacant land in the ACT?
Yes. Vacant land purchases attract conveyance duty under the same two-scale structure. The HBCS applies to vacant land intended for building an owner-occupied home, with the same $1,020,000 threshold for full exemption and the income test removed from 1 July 2026.
This article provides general information only and does not constitute financial or legal advice. Stamp duty rates, thresholds, and concessions may change. Verify your specific liability with the ACT Revenue Office or a qualified conveyancer before exchange. For personalised guidance on your property purchase, connect with an Arrivau advisor — typically within one business day.