- The ACT will not levy stamp duty on first home buyers from 1 July
- The territory is the first jurisdiction to scrap stamp duty entirely for first home buyers, regardless of home value or income
- The exemption will also apply to pensioners, some NDIS recipents, and anyone who hasn't owned a property for five years
The change was handed down in the territory's budget on Wednesday and is set to take effect from 1 July.
Under current rules, only first home buyers purchasing properties under $1 million are exempt from paying transfer duty in the ACT and that's only if they meet low-income thresholds for eligibility.
The new arrangement sees the ACT become the first jurisdiction in Australia to abolish stamp duty for all first home buyers, regardless of home value or income.
See also: Stamp duty calculator - states & territories
The ACT will also expand stamp duty exemptions for pensioners, eligible NDIS participants, and all home buyers who haven't owned a property in the last five years.
The territory's Labor government said the reform removes one of the biggest upfront barriers to home ownership and opens the door for more young people to get into the housing market sooner.
The move is part of the territory government's stated 20-year plan to replace stamp duty with a broader-based land tax system.
Tasmania goes the other way
While the ACT government is scrapping stamp tax for first home buyers, the Tasmanian government is going the other way.
Its state budget confirmed the government is ending stamp duty exemptions for first home buyers after 30 June.
The state government had abolished stamp duty for first home buyers purchasing established homes under $750,000 in February 2024.
Prior to that, it had offered a 50% concession for eligible first home buyers.
But from 1 July, all first home buyers will pay the state's standard stamp duty rates.
The cut-off is determined by settlement date, not the date contracts are signed, seeing first home buyers in Tasmania scrambling to finalise property transfers before the end of June.
Tasmania is also cutting the state's First Home Owner Grant to $20,000 (down from $30,000) for new home purchases or eligible new builds from 1 July 2026.
The new grant will consist of a $10,000 base with another $10,000 available, subject to eligibility.
The final details are yet to be passed into legislation.
WA adjusts stamp duty thresholds
In yet another stamp duty change out of recent state budgets, the Western Australian government has extended eligibility for first home buyer concessions in the state.
First home buyers will pay no stamp duty on established or new homes valued up to $600,000 and will get a discounted rate on properties up to $800,000.
First home buyers will also pay no stamp duty on vacant land purchases up to $450,000.
Off-the-plan buyers can get a 75% stamp duty rebate for purchasing newly completed or under construction apartments, with the rebate capped at $50,000.
The changes also see requirements line up with the WA government's First Home Owner Grant of $10,000.
The WA changes take full effect from 28 July 2026 (estimated) but those signing contracts on or after 7 May or 12 May for new builds may initially pay the old rates until all legislation is passed and systems are in place.
After that time, eligible first home buyers will receive full or partial refunds.
See also:
- NSW First Home Owner Grants
- Victoria First Home Owner Grants
- Queensland First Home Owner Grants
- SA First Home Owner Grants
- NT First Home Owner Grant
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