The ACT Budget will include sweeping stamp duty cuts to make it easier for people to buy a home, a move that could ease pressure on Canberra’s tight rental market and also woo voters come October.
The cuts include extensions of existing schemes for first-home buyers, off-the-plan purchases, people with a disability and pensioners.
The government has also supported its planning incentives for more dual occupancy developments in the suburbs, which have had a poor take-up so far.
It says first-home buyers will save tens of thousands of dollars.
Eligibility for the full stamp duty concession in the Home Buyer Concession Scheme will be extended to the first $1 million of property value, saving first-home buyers up to $34,000 in tax when purchasing their home.
From 1 July, the income eligibility threshold will rise to $250,000 a year for homebuyers who have not owned a property in the previous five years, up from $170,000 a year for homebuyers who have not owned a property in the previous two years.
Home buyers will also be able to earn an additional $4600 per child, up from an additional $3330 per child.
People fleeing family violence will be exempt from the requirement to have not owned a property in the previous five years.
The stamp duty concession for off-the-plan unit purchases will be extended temporarily from 1 July 2024 to include properties valued up to $1 million, up from $800,000 in 2024-25, so more Canberrans can purchase an apartment or townhouse.
This coincides with a big increase in land releases in 2024-25, predominately for townhouses and multi-unit development.
The government also wants to encourage more people to take advantage of planning changes that allow dual occupancy developments on large suburban residential blocks over 800 square metres.
The stamp duty exemption on the first transfer of unit-titled dwellings introduced when the planning rules changed will be temporarily extended to include properties valued up to $1 million in 2024-25 to align with the Off-The-Plan Unit Duty Exemption.
The RZ1 Unit Duty Exemption Scheme runs until 30 June 2026.
This planning change is designed to unlock more suburban land for housing and assist people to downsize in the suburbs where they have lived for many years.
For people with a disability, the existing Disability Duty Concession Scheme will provide from 1 July a full stamp duty concession on the first $1 million of property value.
Previously, the scheme was limited to properties valued up to $1 million, so a partial concession will now be available for properties over that mark.
The government is also introducing a new Severe Disability Duty Exemption from 1 July 2025 to support people with a severe disability and their carers to find a home.
This will exempt homes bought by people with severe disability or their carers from stamp duty if the home is their principal place of residence, without requiring the home to be bought by a Special Disability Trust.
Pensioners will be supported to downsize with the Pensioner Duty Concession Scheme, extended from 1 July 2024 to provide a full stamp duty concession on the first $1 million of property value. A partial concession will be available for properties over $1 million.
The existing scheme provides a full stamp duty concession for homes valued up to $550,000, with a decreasing concession to zero for homes valued between $550,000 and $765,000.
ACT Chief Minister and Treasurer Andrew Barr said the new and expanded stamp duty concessions and exemptions would help more Canberrans find a home that suits their needs.
“We know stamp duty can be a significant barrier to home ownership. That’s why we have cut stamp duty in every ACT Budget since 2012, and this Budget continues that work,” he said.