Everything You Need to Know About Stamp Duty Concessions

Stamp duty concessions represent a legislated reduction or complete exemption from conveyance duty payable on eligible property transactions within the Australian Capital Territory.

For purchasers structuring home loan applications in Canberra, stamp duty concessions materially affect upfront capital requirements and therefore influence loan‑to‑value ratio calculations, deposit adequacy assessments, and potential Lenders Mortgage Insurance (LMI) outcomes. From 1 July 2026, the ACT Government has implemented significant reforms that expand eligibility and remove former price caps and income thresholds. The primary concession mechanisms now available include full duty exemptions for first home buyers, exemptions for purchasers who have not owned property in the past five years, concessions for eligible pensioners and NDIS participants, and exemptions for owner‑occupiers purchasing off‑the‑plan or newly constructed unit‑titled dwellings.

Each concession operates under distinct eligibility criteria and applies to specific property classifications and purchaser circumstances.

First Home Buyer Stamp Duty Exemptions in the ACT (Post‑1 July 2026)

From 1 July 2026, first home buyers in the ACT receive a full exemption from stamp duty, with no property price cap and no income threshold. This represents a substantial expansion of the former scheme, which previously applied only to properties up to $600,000 with concessional rates between $600,001 and $1,000,000.

Eligibility requires that the applicant (or at least one applicant in a joint purchase):

• Has not owned residential property in the past five years
• Intends to occupy the property as their principal place of residence within 12 months of settlement
• Continues to occupy the property for at least 12 months

For home loan structuring purposes, lenders incorporate the duty exemption into settlement cost calculations. A purchaser acquiring a property at $650,000, $850,000, or even above $1 million will incur zero duty, materially reducing upfront cash requirements and improving borrowing capacity. This reduction may eliminate the need for LMI or allow access to lower‑LVR pricing tiers.

Purchasers must provide statutory declarations confirming eligibility. Where a purchaser has previously held property interstate or overseas, supporting documentation may be required. Lenders typically require confirmation of concession approval from the ACT Revenue Office prior to finalising loan amounts and settlement statements.

Removal of the First Home Owner Grant (FHOG)

The First Home Owner Grant (FHOG) in the ACT has been discontinued and no longer applies to purchases or construction of new dwellings. Purchasers should not rely on the former $7,000 grant when structuring deposits or settlement funding.

Exemptions for Purchasers Who Have Not Owned Property in Five Years

A full stamp duty exemption also applies to purchasers who have not owned property in the past five years, even if they are not technically first home buyers. This exemption operates under the same residency requirements as the first home buyer scheme and provides substantial benefit for returning purchasers re‑entering the market.

Pensioner Duty Concessions (Updated 2026 Scheme)

Eligible pensioners may access full stamp duty exemption under the expanded 2026 reforms. The previous sliding‑scale concession (with thresholds up to $1,095,000) has been replaced with a broader exemption framework.

Eligibility requires:

• The purchaser (or at least one joint purchaser) to hold a valid Pensioner Concession Card or equivalent
• The property to be occupied as the principal place of residence

This exemption materially reduces settlement costs for downsizers and retirees with limited cash reserves.

NDIS Participant Duty Exemptions

Eligible NDIS participants may receive a full stamp duty exemption, with:

• No property price cap
• No income threshold
• A requirement that the purchaser has not owned property in the previous two years

This exemption significantly reduces upfront costs for eligible participants and may determine whether a transaction is feasible under lender serviceability criteria.

Off‑the‑Plan and Newly Constructed Unit‑Titled Properties

Owner‑occupiers purchasing:

• Off‑the‑plan units, or
• Newly constructed unit‑titled dwellings (turn‑key units)

receive a full stamp duty exemption. This concession has been made permanent and applies regardless of property value.

For home loan structuring, lenders treat the exemption as a reduction in settlement costs, improving LVR outcomes and potentially eliminating LMI.

Application Process and Documentation Requirements

Applications for stamp duty exemptions are lodged with the ACT Revenue Office at the time of transfer or settlement. Required documentation includes:

• Duty assessment forms
• Statutory declarations confirming eligibility
• Identity verification
• Evidence supporting residency requirements
• Documentation confirming prior property ownership status

Lenders require confirmation of exemption approval as part of the settlement process. Conditional approvals may be issued pending Revenue Office confirmation.

Where eligibility is incorrectly claimed, the ACT Revenue Office may issue an amended assessment requiring payment of the duty differential plus penalty interest. This liability remains with the purchaser and may affect their financial capacity to meet ongoing loan obligations.

Impact on Borrowing Capacity and Loan Structure

Stamp duty exemptions directly affect borrowing capacity by reducing upfront cash requirements and lowering the total loan amount required. For example, a purchaser acquiring a property at $580,000 or $850,000 with a full exemption saves between $19,000 and $30,000 in duty, improving deposit adequacy and reducing the LVR.

A lower LVR may:

• Eliminate LMI
• Improve pricing tiers
• Increase borrowing capacity
• Provide access to products requiring lower LVR thresholds

For purchasers with marginal borrowing capacity, the exemption may determine whether the loan is serviceable under lender assessment criteria.

Interaction with Home Loan Pre‑Approval

Pre‑approval assessments must incorporate the updated ACT duty exemptions. Lenders require disclosure of eligibility and will structure loan offers accordingly. Failure to obtain an anticipated exemption may result in insufficient funds at settlement.

Where eligibility is uncertain, purchasers should obtain confirmation from the ACT Revenue Office prior to exchanging contracts.

For properties in higher‑value suburbs such as Kingston, Braddon, or Griffith, the removal of price caps means first home buyers and eligible purchasers may still receive full exemptions, materially improving transaction feasibility.

OAUM Securities Advisory

OAUM Securities assists Canberra purchasers in structuring home loan applications that incorporate the updated ACT stamp duty exemptions and other capital requirements relevant to property transactions. Contact our team to discuss your eligibility and the impact of these concessions on your loan structure, borrowing capacity, and settlement funding requirements.

Frequently Asked Questions