Stamp Duty abolishment for first home buyers

As of July 1, up to 2,000 first home buyers (per year) are expected to save on stamp duty when the ACT Government’s new stamp duty concession comes into effect. The new scheme waives stamp duty for any first-home buyers with a gross household income below $160,000 – regardless of whether it is a new or existing property.

The new scheme will replace the existing first home buyer scheme which gave $7,000 towards a newly built or substantially renovated property. It will also supersede the old home buyer concession scheme, where first home buyers paid no stamp duty on new properties under $470,000.

Eligible first home buyers would need to buy a property valued at $526,000+ to be better off under the new scheme and the more over this price point, the greater the benefit.

In order to qualify, first home buyers must fall under the following criteria:
Age limit:
All buyers of the home or land must be at least 18 years old

Eligible properties:
Any established property or newly built home

Income requirements:
Combined annual income less than $160,000 of all buyers and their partners

Residence requirements:

At least one person buyer the property must live continuously for at least 1 year, within 1 year of settlement

Home owner requirements:

All buyers and their partners must not have owned a home in the two years leading up to the transaction

First home buyers need to consider their timing in purchasing a property and understand how these changes may impact them. The relevant date for determining which concessions may be available is the date listed on the exchange contract. For example, if you purchased a property prior to July 1 and deferred stamp duty, you would not be eligible for the stamp duty exemption, you would still fall under the outgoing first home buyers scheme.

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