Unlocking First Home Buyer Support in Australian Capital Territory (ACT)
If you’re a first home buyer in the ACT, you’ve got access to some strong incentives that can help you reduce upfront costs and get into the market sooner. But just because something’s available doesn’t mean it’s the right move for you long term.
In this guide, we’ll break down what support is currently available (as of September 2025), how it works, and where strategy really matters. That includes:
Stamp duty concessions through the Home Buyer Concession Scheme (HBCS)
The First Home Guarantee Scheme (FHGS) and its upcoming changes
This resource supports Episode 14 of the First Home Unlocked Podcast, where Jack walks through each scheme and how it fits into your overall strategy.
Stamp Duty Concessions for First Home Buyers in ACT
Stamp duty is a one-off government tax based on your purchase price. And in ACT, it’s often one of the biggest upfront costs, easily adding tens of thousands to your buying budget.
The Home Buyer Concession Scheme provides stamp duty exemptions and concessions to eligible buyers purchasing a home to live in as their principal place of residence.
Unlike most states, this isn’t just for first home buyers, you can still qualify if you haven’t owned property in the last five years. The scheme applies to new homes, established homes, and vacant land, making it one of the most flexible in Australia.
2025 Price Thresholds
Full exemption: Up to $1,020,000
Concessional rates: Between $1,020,000 and $1,455,000
Above $1,455,000: Standard rates apply, but you’ll receive a $35,238 deduction from the total duty because it’s your principal place of residence.
Here are some examples of how the savings work:
At $1,020,000: You pay no stamp duty as a first home buyer buying a property to live in (compared to around $35K for investors or someone who has owned a property in the last 5 years)
At $1,400,000: You pay around $24K (compared to $60K for investors or buyers who have owned a property in the last 5 years)
At $1,600,000: You’d pay around $37K, where and investor or someone who has owned a property in the last 5 years would pay $73K
Eligibility Rules
To qualify for the ACT Home Buyer Concession Scheme, you must:
Be 18 years or older
Not currently own property anywhere in Australia or overseas
Not have owned property in the past five years
Have a total household income under the threshold (see below)
At least one buyer must live in the home for 12 continuous months, starting within 12 months of settlement or occupancy
You can use the Stamp Duty Calculator to estimate what you’ll pay.
Income Thresholds
Your income is assessed using your latest Notice of Assessment from the ATO. If you’re self-employed, it’s based on net trading profit, not total turnover. If you’re in a relationship, both partners’ incomes are included, even if one of you isn’t on the title.
These income limits are based on the number of dependent children in your household:
0 children: you can earn up to $250,000
1 child: $254,600
2 children: $259,200
3 children: $263,800
4 children: $268,400
5 or more: $273,000
Strategy Insight
This scheme can make a big difference to your upfront costs, but it’s important not to let the price caps or savings drive your decision.
Because the ACT scheme tapers gradually (rather than cutting off completely at $1.02M), you don’t instantly lose all benefits by buying slightly higher.
That means paying a little more in stamp duty could unlock a better-quality home in a stronger suburb, one that grows with your lifestyle and delivers better long-term equity.
As we explain in Episode 6: Unlocking Asset Quality, the right suburb, layout, and land value can create lasting flexibility and growth, far more valuable than saving a few thousand dollars upfront.
First Home Guarantee (FHGS)
The First Home Guarantee Scheme (FHGS) is one of the most powerful supports available to help first home buyers purchase with a smaller deposit and no Lenders Mortgage Insurance (LMI), all while keeping full ownership of your home.
This is a federal government scheme run by Housing Australia. It allows you to buy with as little as a 5% deposit, while the government acts as guarantor for the remaining 15% of the 20% typically required by lenders.
That means:
You don’t pay LMI, which can often cost tens of thousands of dollars
You still access competitive interest rates
You keep 100% of the equity and future growth
ACT Price Caps (2025–26)
To qualify for the scheme, the property you buy must fall under the ACT’s price cap:
Now: $750,000
From 1 October 2025: $1,000,000
This increase gives first home buyers in the ACT far more choice, particularly across Canberra where the previous $750K limit made finding quality homes challenging.
Income Caps (Until October 2025)
To be eligible right now, your income must be:
Under $125,000 per year if you’re buying on your own
Under $200,000 combined if buying as a couple
But from 1 October 2025, these income caps will be removed, which means more first home buyers, including dual-income households and higher earners will qualify.
Strategy Insight
The FHGS can be an excellent tool to enter the market sooner without needing a full 20% deposit.
But as always, the key is to focus on what you’re buying, not just how you’re buying it. If the home doesn’t align with your long-term lifestyle or doesn’t hold strong asset fundamentals, you could end up limiting your future options.
When used strategically, the scheme can:
Reduce your upfront costs
Strengthen your cash buffer
Help you buy a home that grows with you
For the full breakdown, listen to Episode 10: Unlocking the First Home Guarantee Scheme, where we explain eligibility, pros and cons, and how to eventually remove the guarantee.
Final Thoughts: Don’t Just Chase the Incentives
Government concessions in the ACT can make home ownership more achievable, but they shouldn’t dictate your decision.
The best results come from having a clear strategy, buying a quality home, and structuring your loan to fit your goals.
That’s where we can help.
We’ll work with you to:
Compare all your available options
Find the right lender and structure for your needs
Ensure you’re using ACT’s incentives without sacrificing long-term value
Listen to Episode 14 for the full breakdown or Book a Get to Know You Chat to map out your plan.
