The ACT government will abolish stamp duty for all first home buyers starting in July, making the territory the first Australian jurisdiction to eliminate the tax for this group. Chief Minister Andrew Barr announced the move as part of the territory’s upcoming budget, aiming to address housing affordability by removing the tax regardless of property value or income.
The decision to abolish stamp duty for first home buyers represents the culmination of a decade-long ambition by the ACT government to remove the tax on all house sales.
How the Stamp Duty Changes Work
Beginning in July, no first home buyer in the ACT will be required to pay stamp duty. Chief Minister Andrew Barr confirmed the exemption applies universally, stating that for key groups, the tax is being eliminated “forever.” The government is also expanding exemptions for pensioners, eligible NDIS participants, and individuals who have not owned property in the past five years.
Beyond first home buyers, the government is targeting the “missing middle”—housing types between detached homes and multi-unit apartments. This includes removing stamp duty on all new unit-titled properties for owner-occupiers. Additionally, the government will temporarily halve the lease variation charge to encourage the development of townhouses, terraces, and low-rise apartments.
While the move provides immediate relief for buyers, the fiscal trade-off is clear: the government anticipates $17 million in forgone revenue during the first year. Chief Minister Andrew Barr has indicated that while stamp duty is being phased out, residents should continue to expect annual increases in rates, suggesting a shift in how the territory balances its long-term tax reform program.
What Happens Next
The ACT government intends to continue the progressive removal of stamp duty across the entire system over the next five years. This policy aligns with the government’s broader housing strategy, which includes a commitment to deliver nearly 26,000 new homes across Canberra over the same period. As the territory transitions away from stamp duty, the government will likely rely on existing annual rate adjustments to manage the resulting revenue gaps.
Frequently Asked Questions
Who is eligible for the new stamp duty exemption?
All first home buyers in the ACT are eligible, regardless of the property value or their personal income. Exemptions are also expanding for pensioners, eligible NDIS participants, and those who have not owned property in the last five years.
How will the government cover the lost revenue?
Chief Minister Andrew Barr stated that the measure will result in $17 million in forgone revenue in the first year. He confirmed that rates will continue to rise annually, noting that this year will be no different.
What is the “missing middle” and how is it being supported?
The “missing middle” refers to housing types like townhouses, terraces, and low-rise apartments. The government is supporting this sector by removing stamp duty on new unit-titled properties for owner-occupiers and temporarily halving the lease variation charge.
How do you believe the shift from stamp duty to annual rates will impact your long-term housing plans?










