Further stamp duty cuts for residential off-the-plan purchases: ACT government

The threshold for stamp duty abolition will be increased by the ACT government from April 1 in a bid to further support home buyers.

Residential stamp duty will be axed for off-the-plan purchases up to $600,000, saving buyers up to $15,720 on their purchases.

This builds on the territory government’s July announcement that it would remove stamp duty for owner-occupiers purchasing an off-the-plan property up to $500,000. 

The increased threshold aims to “support housing purchases by owner-occupiers at the entry level of the market”, said ACT Chief Minister Andrew Barr.

Further extensions of the concession will be considered annually.

The announcement forms part of the territory’s 20-year plan to phase out the property tax, which has been underway since 2012.

“The government is continuing to remove inefficient taxes on properties at the entry level of the housing market to make it easier for Canberrans to purchase their first home or downsize to a property that better suits their needs,” Mr Barr said.

“These tax incentives are also designed to encourage an increased supply of new properties below the duty threshold.”

However, according to Allhomes listings, there are currently only two developments on the market that offer off-the-plan townhouses for less than $600,000, and these are located in Googong, just outside Canberra’s borders.

As for off-the-plan apartments, more than 20 developments offer one- to two-bedroom apartments under that threshold.

Master Builders ACT chief executive officer Michael Hopkins welcomed the latest announcement but called for more to be done for housing affordability.

“To provide equity across the new residential market, stamp duty should be cut for all residential purchases, including vacant land for detached houses,” he said.  

“Supply of vacant residential land for detached housing has been severely constrained in the ACT, leading to significant price increases.” 

For instance, a 988-square-metre block of land in Forde was recently sold for $1.755 million at auction. 

In Canberra’s newest suburb, Macnamara, around 12,300 buyers registered their interest for the first 71 blocks of land sold in a ballot release in February.

“Providing an adequate supply of affordable land for detached housing should be a priority of government, and cutting stamp duty would provide immediate relief for purchasers,” Mr Hopkins said.