The ACT Auditor-General has released a report criticising the Home Buyer Concession Scheme (HBCS) for its complex rules, poor communication, rigid penalties, and lack of support for those facing financial hardship. The report follows a previous ACT Legislative Assembly inquiry that similarly condemned the government for aggressively recovering debts from ineligible recipients.
Since 2019, the scheme has assisted over 25,000 households in purchasing homes. However, the Auditor-General found that the ACT Revenue Office failed to clearly communicate eligibility criteria, leading to confusion among home buyers. Many Canberrans reported being hit with interest and penalties amounting to tens of thousands of dollars after believing they were eligible.
The report highlighted that prior to April 2025, the Revenue Office almost always applied a default 25 per cent penalty plus interest on ineligible claims. It also noted the absence of a specific policy for identifying vulnerable individuals and a lack of formal processes for assessing financial hardship. Additionally, the Revenue Office did not provide adequate information about financial counselling services or means to apply for hardship consideration.
Appeals were taking an average of over six months for a final decision, with interest accruing during that period. The Auditor-General made eight key recommendations, including improving the central web resource with clearer, easy-to-understand rules, enhancing support for vulnerable people, and implementing formal quality reviews into debt investigations.
In response, the ACT Revenue Office acknowledged updates to administrative processes, such as improved website information and extended payment time frames of at least eight weeks, with possible payment plans. The ACT government stated it welcomed feedback and remains committed to improving the scheme for first home buyers.
