Canberrans looking to purchase their first home or downsizing to a smaller property will save thousands of dollars with stamp duty to be abolished on off the plan purchases up to $500,000 or below.
The ACT has been leading the country in removing inefficient taxes that significantly increase the cost of buying a home. Since 2012, we have been reducing stamp duty in the Territory, and this will continue throughout this term of Government.
Our priority through the next phase of stamp duty reductions is to focus on the most affordable end of the housing market. With these changes, anyone purchasing an off the plan apartment or townhouse valued at $500,000 will save $10,360.
It’s $10,360 they no longer have to save, or borrow, when buying in the ACT.
This is a further step in our tax reform program and one that encourages an increased supply of housing below the $500,000 threshold.
If the Government hadn’t started this reform back in 2012, and the Government had continued to raise revenue in the same inefficient way, buyers would be paying $20,500 in stamp duty for the same property that will, from tomorrow (1 July 2021), permanently have zero stamp duty in the ACT.
Just across the border in NSW, home buyers are paying up to $17 707 in stamp duty for such a 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.
By abolishing inefficient taxes such as stamp duty and replacing this revenue with our fairest and most efficient tax base, we are increasing economic activity in the ACT and supporting housing affordability.
Whether you’re looking to purchase your first home, downsize or upsize, the reduction of stamp duty rates will make it easier to purchase and ensure all Canberrans will benefit from fairer, simpler and more efficient taxes and duties.