A recent change to the ACT’s property tax laws is offering a massive financial lifeline to separating couples. However, property experts warn that a widespread lack of awareness means vulnerable buyers are missing out.
Changes to the Home Buyer Concession Scheme (HBCS) mean eligible Canberrans who have separated from a spouse or de facto partner may now qualify for full stamp duty relief without being assessed against their ex-partner’s finances.
Under the previous framework, a separated person looking to purchase alternative accommodation was financially linked to their estranged partner. If the ex-spouse earned over the income threshold or retained ownership of the family home, the applicant could be prevented from qualifying for stamp duty relief, even if they had fled the property due to domestic violence.
The new rules allow eligible buyers to be assessed independently of their estranged spouse, reducing the need to wait for formal property settlements or court orders before purchasing another home.
However, industry insiders say the message hasn’t trickled down yet.
“In practice, these critical changes are still flying under the radar,” Velocity Conveyancing principal Andrew Satsias says.
“Not many people know about it, including some lawyers, and people are routinely waiting for a binding financial agreement or consent orders before purchasing a new property.”
The changes, which provide relief during the already emotionally and financially draining process of separation, are especially crucial when safety is a factor and someone needs to move fast, Andrew says.
“It targets the family breakdown situation, assisting those people who need to move quickly out of their family residence,” he says.
“A delay could mean the difference between finding alternative housing or putting life on hold, which is incredibly disruptive, particularly when there are children involved.”
The impact of the reform is amplified by a broader expansion of the Home Buyer Concession Scheme itself. The ACT government has lifted the eligible household income threshold from $170,000 to $250,000, added extra allowances for dependent children, and entirely removed stamp duty on eligible transactions up to $1,020,000.
“For someone buying a home at that price point, the savings amount to tens of thousands of dollars — money that can instead be used to secure a future,” Andrew says.
But while the policy introduces powerful relief, revenue authorities have maintained strict safeguards.
The ACT Revenue Office operates on a self-assessment system, meaning buyers may be required to provide evidence of an irretrievable relationship breakdown, such as statutory declarations or formal divorce applications.
The applicant must also still satisfy the remaining standard HBCS eligibility requirements on their own merit.
There is also a strict residency requirement designed to stop the concession from being used as a loophole for property investment.
At least one buyer must move into the property and live there as their principal place of residence continuously for at least one year. If a buyer decides to rent out the property during that mandatory 12-month period, clawback provisions allow the government to reassess the concession and require the stamp duty to be paid.
If circumstances materially change, including reconciliation, this may affect eligibility and should be disclosed where required.
“Ultimately, the broader Home Buyer Concession Scheme framework remains unchanged. This reform just makes things easier for people forced to leave their principal place of residence due to a marital breakdown so they can move more quickly rather than waiting for financial separation processes to be finalised.”
For Andrew, the reforms ultimately recognise a reality that separating couples, particularly those leaving under pressure, often cannot afford to wait for the legal process to catch up with their circumstances.
“Separation is already one of the most financially destabilising experiences people go through,” he says.
“These changes won’t solve every issue, but they do remove one significant barrier for people trying to secure stable housing and move forward.”
For more information, visit Velocity Conveyancing.
Note: This article by Dione David was originally republished on Region.”
This article provides general information only and shouldn't be considered specific legal advice. Every property situation is unique, and we recommend consulting with qualified solicitors for personalized guidance. Contact our team for legal advice.
