First-home buyers will be able to buy homes in the Australian Capital Territory and pay zero stamp duty from 1 July 2026 after the government abolished the controversial tax in a national first.
It’s the first jurisdiction in Australia to cut stamp duty entirely for all first-home buyers, removing one of the biggest upfront hurdles to home ownership.
The move was announced in the territory’s latest budget, along with expanded stamp duty exemptions for pensioners, eligible National Disability Insurance Scheme (NDIS) participants and all home buyers who have not owned property in the past five years.
ACT chief minister Andrew Barr said the changes would help more Canberrans get into the market sooner and with greater confidence.
“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,” Mr Barr said.
“That, in turn, frees up larger homes for growing families. 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.”
The ACT has been transitioning away from stamp duty towards a broad-based land tax since the early 2010s as part of a long-term tax reform program.
The ACT will abolish stamp duty for all first-home buyers from 1 July 2026. Picture: Getty
Economists have long argued for state and territory governments to move from stamp duty to broad‑based land taxes to improve economic efficiency, reduce barriers to moving house and create a more stable and predictable revenue base.
REA Group senior economist Angus Moore said removing stamp duty for first-home buyers was another step on the territory’s tax reform program.
“Stamp duty is a particularly significant barrier for first-home buyers, because it represents an additional deposit that has to be saved,” Mr Moore said.
“For many first-home buyers, saving that deposit is a significant hurdle. That's why many states, the ACT included, have concessions and exemptions for first-home buyers.
REA Group senior economist Angus Moore says stamp duty is a particularly significant barrier for first-home buyers. Picture: Supplied
“The ACT already had a fairly generous concession, with homes under about a million paying no stamp duty, and those under $1.45 million paying a concessional rate. Eliminating stamp duty for first-home buyers entirely further expands those concessions.”
Stamp duty relative to incomes is four-and-a-half to six times higher than a generation ago, depending on the state, according to PropTrack.
ACT homeowners can expect to pay about $37,600 in stamp duty when buying a median-priced house in the territory without any exemptions or discounts, according to the ACT Revenue Office.
The ACT’s median house price was $1.011 million in May, up 3.2% compared to a year earlier, according to PropTrack.
The average full-time working adult in the ACT earns $2,248.40 per week, or almost $117,000 a year, according to the latest figures from the Australian Bureau of Statistics.
More budget reforms
The ACT budget also included property tax cuts aimed at increasing housing density in middle-ring suburbs, otherwise known as the ‘missing middle’.
The cuts include removing stamp duty on all new unit-titled properties bought by owner-occupiers and continuing the concession for owner-occupiers buying off-the-plan units.
The concession has also been expanded to all turn-key units or newly constructed units that have not been sold off-the-plan.
In addition, the territory government has introduced a time-limited 50% reduction in the codified Lease Variation Charge for missing middle developments to lower overall development costs while maintaining a return to the community.
The government argues the changes to the lease variation charges will lower overall development costs and encourage builders to bring forward more ‘missing middle’ housing projects sooner.
English (US) · 