Are you buying an Affordable House and Land Package? This is an arrangement covered by one contract, or separate related contracts, which results in a new house being built on a new block of land in the ACT. The total contracted price for the purchase of the land, and the construction of the home on that land must not exceed $300,000. The number of, and eligibility for, these packages is determined by the Land Development Agency (LDA) and other developers. Payment of duty on the land is not required until the house is ready to be occupied (up to a maximum of two years). Where the package is provided by the LDA under the OwnPlace Program, you may choose to apply for a Land Rent lease.
Are you eligible to defer payment of the duty? You can defer the payment of duty if you are eligible for the FHOG or the HBCS and purchase a property priced at or below the relevant HBCS upper property threshold. The amount that can be deferred must be at least $1,000. No payment is required for the first five years, and duty plus interest must be paid over the next five years.
Is your annual income less than $120,000? You may be eligible for the HBCS which is an ACT Government initiative to assist persons in purchasing a residential home or residential vacant land by charging duty at a concessional rate. Successful applicants are generally required to be at least 18 years old, must satisfy a current and previous property ownership test and a residency test. The property purchased must be less than the upper property value threshold for the appropriate HBCS and the household income must be below the upper threshold, noting there is an additional allowance if you have dependant children.
