ACT to scrap stamp duty for all first time home buyers

The ACT will become the first jurisdiction in Australia to scrap stamp duty for all first home buyers, regardless of property value or income.

The measure, due to come into effect next month, was unveiled as part of yesterday’s ACT budget.

Chief Minister Andrew Barr says the reform will remove a major hurdle for people seeking a foothold on the housing ladder.

“Stamp duty has long been one of the biggest upfront hurdles to entering the housing market. From 1 July 2026, that barrier is gone for first home buyers in the ACT. We made this commitment, and this Budget delivers it in full,” he said.

“These changes mean first home buyer owner‑occupiers can purchase a home without paying a cent in stamp duty, helping more Canberrans get into the market sooner and with greater confidence.”

In January 2012, the ACT government announced a 20-year plan to end stamp duty.

Stamp duty exemptions will also be expanded for pensioners, eligible National Disability Insurance Scheme (NDIS) participants and all home buyers who have not owned property in the past five years.

Barr said the measures were part of the territory government’s long-term housing shake-up.

“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.”

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First home deposit scheme backfires as house prices tumble

Critics of stamp duty say the government impost makes moving house more expensive, with the result of discouraging downsizing and moving to larger properties as family requirements change.

It is also an unpredictable revenue source for governments because property prices and sale volumes every year can change dramatically.

Other budget measures announced yesterday included a plan to raise the number of ACT homes in the “missing middle” — designated as types of housing between multi-unit apartments and single detached dwellings.

Stamp duty would be axed on all new unit-titled properties purchased by owner-occupiers.