ACT first home-buyers and downsizers set to benefit from new stamp duty cuts

Proposed cuts to stamp duty will surely be welcome news in a city with the country’s second-most expensive house prices.

With the handing down of the ACT government’s 2024-2025 budget last month, first-home buyers, in particular, can look forward to saving tens of thousands of dollars on the purchase of a home.

Under changes to the Home Buyer Concession Scheme from July 1, Canberrans will be eligible for the full stamp duty concession on the first $1 million of property value, representing a tax saving of about $34,000.

The threshold for household income will also increase to $250,000 per year, up from $170,000. However, it will apply only to buyers who have not owned a property for five years instead of two years under the old criteria.

Exemption from this requirement has been made for people fleeing family violence.

ACT Chief Minister and Treasurer Andrew Barr says stamp duty can be a significant barrier to home ownership, and this budget continues the government’s policy of reducing the burden of stamp duty every year since 2012.

“The new and expanded stamp duty concessions and exemptions outlined in this year’s ACT budget will support more Canberrans to find a home that suits their needs, including first-home buyers, downsizers and people with a disability,” he says.

Buyers in the market for an off-the-plan townhouse or apartment will not have to pay stamp duty on purchases up to $1 million during 2024-25, where previously this was capped at $800,000.  

According to the latest Domain House Price Report, Canberra’s median house price is $1,049,719, with units almost half that at $565,303.

Downsizers are set to receive a full stamp duty concession on the first $1 million of property value (this was previously capped at $550,000), while a partial concession will be available for properties over $1 million.

The government is also extending the Disability Duty Concession Scheme to provide a full stamp duty concession on the first $1 million of property value for eligible applicants, with a partial concession for properties over $1 million.

From July 1 2025, the new Severe Disability Duty Exemption will support people with severe disabilities and their carers in finding a home without requiring a Special Disability Trust to buy the property.