Three smaller jurisdictions — Tasmania, the Australian Capital Territory, and the Northern Territory — are taking radically different approaches to first home buyer support in 2026-27. The ACT has become the first jurisdiction in Australia to fully abolish stamp duty for all first home buyers. The NT offers a $50,000 HomeGrown grant, the largest in the country. Tasmania is pulling back, reducing its FHOG from $30,000 to $20,000. Here is what each jurisdiction offers and who should consider buying where.
ACT: Stamp Duty Fully Abolished — First in Australia
From 1 July 2026, the ACT is the first Australian jurisdiction to fully abolish stamp duty for all first home buyers who live in the property. Both the property price cap and the income threshold for the Home Buyer Concession Scheme have been removed entirely — no limits apply. Newly constructed turn-key units (unit-titled, not sold off-plan) are also exempt from duty for owner-occupiers.
The ACT has been gradually replacing stamp duty with annual general rates (land tax) since 2012. This is the culmination of that reform.
No FHOG
The ACT does not offer a First Home Owner Grant. The Home Buyer Concession Scheme provides a full stamp duty waiver instead. Eligibility requires all buyers and their domestic partners to not have owned property in the last five years, and at least one buyer must own and live in the home as a principal place of residence for at least 12 months within one year of settlement.
What You Pay Instead: General Rates
General rates replace stamp duty revenue and are calculated as a Fixed Charge plus a Valuation Charge on the 5-year averaged unimproved land value (AUV). For 2026-27:
- Residential houses: Fixed charge $884 + marginal rating factors from 0.2842% to 0.6018% depending on AUV bracket
- Residential units: Fixed charge $943 + marginal factors from 0.6400% to 1.0156%
- Rates increase capped at 5% on average residential bills
- Additional levies: Safer Families Levy ($70), Police Fire Emergency Services Levy ($458). The Health Levy is discontinued from 2026-27.
Land Tax (Investment Properties)
Land tax in the ACT is separate from general rates and applies only to rented residential properties (not principal residences). There is no tax-free threshold — every investor-held block is liable. Rates range from 0.54% to 1.14% of land value on a sliding scale, billed quarterly.
Crown Lease System
The ACT operates under a unique leasehold land tenure system. All land is held under Crown lease, typically 99-year terms, not freehold like other states. In practice, this functions like freehold ownership for residential buyers. You can apply for a new lease at the end of the term with only an administrative fee if the land is not needed by the Territory or Commonwealth.
Rent Increase Cap
ACT rent increases are capped at CPI plus 10% of the Canberra rental CPI. Increases are limited to once every 12 months, with at least 8 weeks written notice required.
Housing Supply Targets
The ACT's land release program targets 26,000 new homes over the next five years, with 30,000 new homes enabled by the end of 2030 including public, community, and affordable housing. A new 450-home Public Housing Pipeline is being accelerated through Territory Priority Projects legislation.
NT: $50K HomeGrown Grant — Australia's Largest
The Northern Territory's HomeGrown Territory Grant provides $50,000 for first home buyers building or purchasing a new home — the largest grant of its kind in Australia. There is no cap on build or purchase price. The scheme has been extended to 30 September 2027 for contracts, with applications due by 30 September 2028.
Who Qualifies
- First home buyer (never owned a home anywhere in Australia)
- Contract signed between 1 October 2024 and 30 September 2027
- Building, buying a new home, or purchasing a new transportable home
- Owner-builders and off-the-plan purchases are eligible
- At least one applicant must be an Australian citizen or permanent resident, aged 18+
- Must live in the home for at least 12 months after possession or completion
The grant can be released early through a financial institution to help with the deposit.
FreshStart New Home Grant: $30K for Existing Homeowners
For existing homeowners (not first home buyers), the NT offers a $30,000 FreshStart grant for building or purchasing a new home. This cannot be used in conjunction with the HomeGrown grant. Contract deadline: 30 September 2027.
Stamp Duty Concessions
The Territory Home Owner Discount (THOD) provides a full stamp duty exemption on properties up to $500,000 — for both new and established homes. It is not limited to first home buyers; anyone who currently does not own NT residential property can apply. Estimated savings: approximately $22,286 on a $400,000 property, approximately $30,357 at the $500,000 ceiling.
NT also offers a Principal Place of Residence Rebate for concessions beyond the THOD scope, and a specific stamp duty exemption for house-and-land packages (duty assessed on land component only).
HomeBuild Access
The NT HomeBuild Access program provides low-deposit home loans and shared equity for low and middle-income Territory buyers, focused on new-built homes. The shared equity component can be bought back over time.
Unique Advantages: No Land Tax, No Foreign Surcharges
The NT is the only Australian jurisdiction that does not levy land tax at all — there is zero annual holding cost beyond council rates. It also does not impose any foreign buyer stamp duty surcharge or foreign owner land tax surcharge. Combined with the $50,000 HomeGrown grant and $500,000 stamp duty exemption through THOD, the NT is the most generous and simplest property regime in Australia for first home buyers.
FIRB rules still apply at the federal level, including the ban on foreign purchases of established dwellings extended to 30 June 2029.
TAS: $20K FHOG (Down from $30K) + 50% Duty Discount
Tasmania's 2026-27 Budget, delivered by Treasurer Eric Abetz in May 2026, reduced the First Home Owner Grant from $30,000 to $20,000 from 1 July 2026. The grant is now $10,000 base plus $10,000 additional, applicable to new homes only.
Stamp Duty Concession
From 1 July 2026, Tasmania offers a 50% stamp duty discount on established homes up to $600,000. This is for established homes only. The previous window (18 February 2024 to 30 June 2026) offering a full exemption on established homes up to $750,000 has now closed. There is now no first home buyer duty concession for new homes, though you can still combine the $20,000 FHOG with a new build purchase.
TAS stamp duty rates are relatively moderate at lower thresholds: $50 flat on the first $3,000, rising through brackets to $4.50 per $100 over $725,000 at the top end.
Land Tax
Tasmania's land tax threshold is $125,000. Rates start at $50 plus 0.45% of value above $125,000, capping at $1,737.50 plus 1.5% above $500,000. The principal residence is fully exempt.
Foreign Buyers
Tasmania imposes an 8% Foreign Investor Duty Surcharge (FIDS) on top of standard stamp duty — one of the highest rates, matching NSW and VIC. A 2% Foreign Investor Land Tax Surcharge (FILTS) applies from the first dollar of assessed land value with no tax-free threshold.
Housing Strategy
The 20-year Tasmanian Housing Strategy (2023-2043) aims to end homelessness with targets of 10,000 new homes and 2,000 social housing homes. Homes Tasmania is the delivery body.
Which Jurisdiction is Best for You?
| Jurisdiction | Best Feature | Key Limitation |
|---|---|---|
| ACT | $0 stamp duty, no cap, no income test | No FHOG; ongoing general rates |
| NT | $50K grant, no land tax, no foreign surcharges | Limited market; higher stamp duty rates above $500K |
| TAS | 50% established home duty discount | FHOG cut to $20K; no new home duty concession |
FAQ
Can I buy in the ACT and claim stamp duty exemption if I'm not a first home buyer? No. The full stamp duty abolition from 1 July 2026 applies only to first home buyers who live in the property. Other buyers pay full conveyance duty and ongoing general rates. Pensioners and people with disabilities have separate expanded concessions.
How does the NT $50K HomeGrown grant work with a loan deposit? The grant can be released early through an approved financial institution to help with the deposit on a new home loan. You can combine it with the THOD stamp duty exemption (up to $500,000 property value) and potentially with federal schemes.
Is the ACT general rates system cheaper than stamp duty? Over 10 to 15 years, the total cost of general rates typically exceeds what you would have paid in upfront stamp duty under the old system. The trade-off is that you don't need a large lump sum at purchase — the cost is spread annually.
Why is Tasmania reducing the FHOG? The 2026-27 Budget reduced the FHOG from $30,000 to $20,000 as a fiscal measure while maintaining the 50% established home stamp duty discount. The stated purpose is to support the civil construction industry while managing budget pressures.
Can I buy an established home in the NT with the HomeGrown grant? No. The $50,000 HomeGrown grant applies only to new homes, new builds, and new transportable homes. For established homes, use the THOD stamp duty exemption (up to $500,000) and the $10,000 Established Home First Home Buyer Grant if still available.