From today, Thursday 1 July, stamp duty will be fully abolished for owner/occupiers purchasing a townhouse or apartment off the plan for $500,000 and under in the ACT.
The move will see a component of stamp duty concessions introduced as a COVID-19 stimulus measure for the construction industry made permanent.
ACT Chief Minister Andrew Barr said the exemption would also see an increased supply of affordable housing under the $500,000 mark.
“Our priority through the next phase of stamp duty reductions is to focus on the most affordable end of the housing market,” Mr Barr said.
Buyers will save just over $10,000 in stamp duty on a $500,000 purchase in the ACT.
“It’s $10,360 they no longer have to save, or borrow, when buying in the ACT,” he said.
Master Builders ACT has welcomed the move but has called on the government to increase the price threshold due to lack of stock in the Territory under the $500,000 mark.
“Currently there is a scarce number of off-the-plan apartments or townhouses for sale that are priced under $500,000,” he said.
“With ACT house prices increasing rapidly, the $500,000 threshold should be increased to meet the realistic cost of housing in the Territory. “
Mr Hopkins also called on the Government to extend the exemption to investors, which he said would mean more affordable rental solutions for the ACT’s tight rental market.
The exemption is part of the ACT Government’s 20-year plan for tax reform in the Territory, which has seen “inefficient” taxes like stamp duty decreased and made up for with increases to rates.
Mr Barr said the ACT Government would continue to decrease rates to make it easier for Canberrans to purchase property.
“We will also cut stamp duty across a range of property purchases in the ACT. Duty on any owner-occupier purchase between $200,000 to $1,455,000 will be $1,040 lower in 2021-22 than in 2020-21,” he said.
Stamp duty in the ACT is managed by the ACT Revenue Office.
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