The move was announced in the territory\u2019s latest budget, along with expanded stamp duty exemptions for\u00a0pensioners, eligible National Disability Insurance Scheme (NDIS)\u00a0participants and all home buyers who have not owned property in the past five years.\u00a0<\/p>\n
ACT chief minister Andrew Barr said\u00a0the changes would help\u00a0more Canberrans get into the market sooner and with greater confidence.\u00a0<\/p>\n
\u201cWe are also extending stamp duty relief to pensioners and to people\u00a0purchasing\u00a0new unit-titled homes, giving older Canberrans more choice to downsize and better match their housing to their needs,\u201d\u00a0Mr\u00a0Barr said.\u00a0\u00a0\u00a0<\/p>\n
\u201cThat, in turn,\u00a0frees up\u00a0larger homes for growing families.\u00a0Together, 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.\u201d\u00a0\u00a0<\/p>\n
The ACT has been\u00a0transitioning away\u00a0from stamp duty towards a broad-based land tax since the early 2010s as part of a long-term tax reform program.\u00a0<\/p>\n
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The ACT will abolish stamp duty for all first-home buyers from 1 July 2026. Picture: Getty<\/p>\n
Economists have long argued for state and territory governments to move from stamp duty to broad\u2011based land taxes to improve economic efficiency, reduce barriers to moving house and create a more stable and predictable revenue base.\u00a0\u00a0<\/p>\n
REA Group senior economist Angus Moore said\u00a0removing stamp duty for first-home buyers\u00a0was\u00a0another step on\u00a0the territory\u2019s tax reform program.\u00a0\u00a0<\/p>\n
\u201cStamp duty is a particularly significant barrier for first-home buyers, because it\u00a0represents\u00a0an additional\u00a0deposit that has to be saved,\u201d\u00a0Mr\u00a0Moore said.\u00a0\u00a0<\/p>\n
\u201cFor many first-home buyers, saving that deposit is a\u00a0significant\u00a0hurdle.\u00a0That’s\u00a0why many states, the ACT included, have concessions and exemptions for first-home buyers.\u00a0\u00a0<\/p>\n
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REA Group senior economist Angus Moore says stamp duty is a particularly significant barrier for first-home buyers. Picture: Supplied<\/p>\n
\u201cThe ACT already had a\u00a0fairly generous\u00a0concession, with homes under about a million paying no stamp duty, and those under\u00a0$1.45\u00a0million\u00a0paying a concessional rate.\u00a0Eliminating\u00a0stamp duty for first-home buyers entirely further expands those concessions.\u201d\u00a0<\/p>\n