ACT Abolishes Stamp Duty for All First Home Buyers

The Australian Capital Territory (ACT) is set to become the first jurisdiction in Australia to completely abolish stamp duty for all first home buyers. Starting in July, the territory will remove this tax for every individual purchasing their first home, irrespective of the property's value or the buyer's income.

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We have now reached the point for key groups, stamp duty can be eliminated entirely, forever.

This significant policy shift aligns with the ACT government's long-standing objective to eliminate stamp duty on all property sales over the past decade. Chief Minister Andrew Barr has labeled stamp duty an "inefficient and unfair tax," emphasizing that its complete removal for first home buyers marks a "major milestone" in the government's tax reform program.

Beyond first home buyers, the ACT government is also broadening stamp duty exemptions for other groups. Pensioners, eligible National Disability Insurance Scheme (NDIS) participants, and individuals who have not owned property in the last five years will also benefit from expanded concessions. These measures are intended to enhance housing affordability for residents of Canberra.

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[It's] gone, never again to emerge.

In addition to stamp duty reforms, the budget includes initiatives to increase housing supply, particularly in the "missing middle" category. The government plans to remove stamp duty on new unit-titled properties for owner-occupiers and extend concessions to newly constructed units. A temporary halving of the lease variation charge aims to encourage the development of more townhouses and low-rise apartments.

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This budget marks a major milestone in our long-term tax reform program, delivering a fairer system and improving housing affordability for Canberrans.