The Australian Capital Territory is set to become the first jurisdiction in Australia to scrap stamp duty for all first home buyers. The new reform, coming into effect on July 1, has been announced by the ACT government ahead of delivering the state’s budget.
Key Reforms Announced
Chief Minister Andrew Barr said the changes were part of the government’s concentrated efforts to remove barriers to home ownership and could help more Canberrans enter the housing market with confidence. “This budget marks a major milestone in our long-term tax reform program, delivering a fairer system and improving housing affordability for Canberrans,” Mr Barr said.
Regarded as the biggest upfront barrier to owning a home, the reform will also be expanded to pensioners, some NDIS participants, and all other home buyers who have not owned a property since 2021. “We are also extending stamp duty relief to pensioners and to people purchasing new unit-titled homes, giving older Canberrans more choice to downsize and better match their housing to their needs. That, in turn, frees up larger homes for growing families,” Mr Barr said.
Support for Missing Middle Housing
The ACT government also announced a number of reforms to support the development of the “missing middle,” which includes multi-unit apartments and single dwellings. In the next five years, Canberrans can expect a progressive removal of stamp duty across the board.
Buyers who are looking into living in the unit-titled home they purchase will not pay a cent of stamp duty, and concessions for owner-occupiers buying off-the-plan units will continue. To support the development of missing middle homes, the ACT government has also introduced a temporary 50 per cent reduction in the lease variation charge.
Approved by the planning minister, these reforms will help develop more low-rise housing, including terraces, townhouses, and multi-occupancy housing in residential blocks in Canberra. They are currently before the Legislative Assembly. In the next five years, Canberrans can expect a progressive removal of stamp duty across the board.
