In a national first, one Australian jurisdiction will axe stamp duty for every first‑homebuyer from July 1, with the landmark change anchoring a housing‑heavy budget delivered against a backdrop of mounting debt.
The significant reform, unveiled in the Australian Capital Territory latest budget, makes the nation’s property tax landscape a live test case for a wholesale shift away from upfront transaction taxes.
Previously, only homes under $1 million were exempt, and purchasers had to meet strict income eligibility thresholds.
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However, under the new provisions, every first-home buyer in the ACT will be free from the burden of stamp duty, regardless of the property’s value or their income.
ACT Treasurer Chris Steel highlighted the importance of the reform.
“The elimination of stamp duty for first home buyers complements the federal government’s tax reforms by supporting younger generations of Canberrans to own their own home,” he said.
Sophia Cull, is a first homebuyer who recently bought a three bedroom townhouse in March, and was hit with the third interest rate rise even before moving in. Photo: Steve Pohlner
Stamp duty will also be waived for pensioners, some National Disability Insurance Scheme recipients and anyone who hasn’t owned a property for five years.
The government hasn’t yet revealed the cost of the expanded exemption.
The housing push sits within a broader suite of measures to boost supply and ownership.
A temporary reduction in the ACT lease variation charge – which levies developers for increases in land value following building approvals – aims to lower project costs and bring forward construction.
The Canberra suburb of Whitlam has been named Australia’s fastest growing suburb for the second year in a row.
Recent “missing middle” planning reforms have already opened the door to more low-rise homes, such as terraces and townhouses, across large parts of Canberra.
The government is targeting 30,000 additional homes by the end of 2030 and is currently the only state or territory on track to meet its housing target.
The ACT will also follow NSW by introducing a pattern book of pre-approved housing designs to speed up planning approvals for builders who use the templates.
”Together, these reforms open the door for more renters to become owners, support younger households to build their future in Canberra, and ensure our tax system works better for the next generation,” Chief Minister Andrew Barr said.
ACT Treasurer Chris Steel announced the stamp duty changes on Wednesday.
Despite the housing-heavy agenda, the budget arrives under pressure.
In February’s mid-year update, Mr Steel forecast the deficit to narrow from $499 million this financial year to $80 million in 2026/27, while net debt was projected to rise from $11 billion to $12.8 billion.
Much of the territory’s infrastructure pipeline has been paused to find savings.
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