What is stamp duty?
Stamp duty is a tax applied to property purchases in Australia, and it is levied by states and territories. The amount you pay depends on the property price and location, and there are concessions for certain buyers. In the current financial year, the first jurisdiction in Australia has announced it will abolish stamp duty entirely for first-home buyers.
The first territory to scrap stamp duty for first-home buyers
From 1 July of this year, the Australian Capital Territory (ACT) will remove stamp duty for all first-home buyers. Under the new rules, there will be no income or property price caps, meaning all first-home buyers in Canberra will not pay stamp duty. This change was announced by the ACT Treasurer as part of the territory’s budget.
The Treasurer said that eliminating stamp duty for first-home buyers complements federal tax reforms and supports young Canberra residents to achieve home ownership.
How stamp duty varies by property type across Australia
Generally, first-home buyers purchasing lower-priced new homes are likely to receive the largest stamp duty discounts, while investors buying higher-priced existing properties typically pay more stamp duty. Other states and territories also offer stamp duty concessions, but rules differ widely, so prospective buyers should check their local requirements.