What property tax changes did the ACT government announce for first home buyers?

The Australian Capital Territory has completely abolished stamp duty for all first home buyers. Additionally, starting July 1, the stamp duty exemption will extend to anyone purchasing a new unit-titled property.

How much money will property buyers save under the new ACT stamp duty rules?

Under the new rules, a first home buyer in Canberra will save roughly $10,000 on an $850,000 property compared to a buyer in New South Wales. For a $1 million home, the savings increase to nearly $40,000.

How is the ACT government funding the abolition of stamp duty?

The ACT is funding the reform through a long-term structural transition toward higher municipal property rates. By gradually increasing broad-based land taxes, the government is replacing the volatile and unpredictable revenue stream traditionally generated by stamp duty transactions.

What is the lease variation charge cut, and which properties does it affect?

The ACT government is slashing the lease variation charge by 50% for townhouses, terrace homes, and low-rise apartment buildings. This charge is the cost developers pay to amend land plans. The reduction specifically aims to lower development costs and fast-track the supply of "missing middle" housing.

Why haven't other Australian states completely phased out stamp duty like the ACT?

Other Australian states face structural and constitutional barriers because their municipal rates are collected by local councils rather than the state government. This leaves state treasuries without an established, direct tax line to substitute for lost stamp duty revenue.

How do the ACT's new stamp duty exemptions compare to states like NSW, Victoria, and WA?

While states like Victoria, New South Wales, and Western Australia offer stamp duty concessions, they use strict caps and thresholds (often cutting off between $600,000 and $800,000). The ACT has removed the tax entirely for first home buyers without those traditional caps.

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ACT abolishes first home buyer stamp duty

Written by Brie CarterPublished Jun 10, 2026, 10:32 PM

The Australian Capital Territory has become the nation’s first jurisdiction to completely abolish stamp duty for first home buyers.

ACT Chief Minister Andrew Barr confirmed the exemption will also extend to new unit-titled properties from July 1, alongside expanded concessions for pensioners and NDIS participants.

The structural shift is funded by a long-term transition towards municipal property rates, which replace the volatile revenue stream.

Under the new rules, Canberra buyers will save approximately $10,000 on an $850,000 property and nearly $40,000 on a $1 million home compared to peers in New South Wales.

To boost "missing middle" housing supply, the government is also slashing the lease variation charge by 50% for townhouses and low-rise apartments.

While states like Victoria and Western Australia offer capped exemptions, the ACT's broad-based land tax model bypasses the structural barriers faced by other states, where local councils collect municipal rates rather than state treasuries.

Reserve Bank Governor Michele Bullock previously criticised stamp duty as an economic barrier that impedes labour mobility and downsizer flexibility.