ACT abolish stamp duty for off-the-plan purchases under $500K

Market Insights
2 years ago
2 minutes

From July 1st, your purchase of an off-the-plan apartment or townhouse in the ACT could be free of stamp duty!

The ACT government continues to follow through on its promise to phase out stamp duty in the state and has now abolished it for owner/occupiers buying an off-the-plan apartment or townhouse up to $500,000.

More good news - the incentive applies to any buyer. So whether you’re a first home buyer,  downsizer, or just fancy a change of location, you’re eligible.

The price reduction this incentive creates is pretty significant. Those buying a $500k property will now save $10,360 in stamp duty.

“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,” ACT Chief Minister Andrew Barr said.

“Our priority through the next phase of stamp duty reductions is to focus on the most affordable end of the housing market.

“This is a further step in our tax reform program and one that encourages an increased supply of housing below the $500,000 threshold.”

There’s also good news for those looking to purchase more expensive homes. Albeit a smaller reduction, stamp duty will be reduced by $1040 for any owner-occupier property purchase between $200,000 to $1.455 million in 2021-22.

These incentives form part of the ACT’s 20-year plan to scrap property taxes - a move which began in 2012.

“If the government hadn’t started this reform back in 2012 … [and it] 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, permanently have zero stamp duty in the ACT,” Mr. Barr said.

“Just across the border in NSW, home buyers are paying up to $17,707 in stamp duty for such a property.”

Furthermore, in NSW only first-home-buyers are eligible for stamp duty exemptions.

This is fantastic news for consumers looking to get into the ACT market, which has been keenly sort after by our audience across Apartments & Developments and via our agent portal market-place Development ID.

With already a very bright outlook with respect to property investment in the ACT,  interest rates at all time lows and now no stamp duty under 500k and reductions above - we are expecting to see lead volumes grow considerably across our portals

For more apartments and townhouses in the ACT click here.

Or here for more market insights.