Canberra becomes the first Australian jurisdiction to fully remove stamp duty for first-time buyers, in a major reform aimed at cutting upfront costs and accelerating home ownership.
From 1 July 2026, no first home buyer in the ACT will pay stamp duty, regardless of property price or income, under a sweeping Budget measure confirmed in the 2026–27 ACT Budget.
Chief Minister Andrew Barr said the reform marks the completion of a long-term tax shift designed to remove barriers to entry.
“This Budget marks a major milestone in our long-term tax reform program, delivering a fairer system and improving housing affordability for Canberrans,” Mr Barr said.
“Stamp duty has long been one of the biggest upfront hurdles to entering the housing market. From 1 July 2026, that barrier is gone for first home buyers in the ACT.”
He confirmed the change will apply broadly to eligible buyers, including those re-entering the market after long absences.
“These changes mean first home buyer owner-occupiers can purchase a home without paying a cent in stamp duty, helping more Canberrans get into the market sooner and with greater confidence.”
The reform also extends concessions to pensioners, eligible NDIS participants, and people who have not owned property for five years, effectively widening the first home buyer definition.
Under current settings, stamp duty adds significant upfront cost to purchasing a home in Canberra – roughly $30,000 on a $1 million property and about $70,000 on a $1.5 million home.
From July, that cost will be eliminated entirely for first home buyers.
Mr Barr said the reform is designed to support both affordability and mobility in the housing market.
“We are also extending stamp duty relief to pensioners and to people purchasing new unit-titled homes, giving older Canberrans more choice to downsize and better match their housing to their needs,” he said.
“Together, these reforms open the door for more renters to become owners, support younger households to build their future in Canberra.”
The change forms part of a broader 20-year transition away from stamp duty toward higher annual rates, with the government estimating around $17 million in forgone revenue in the first year.
Missing middle push and faster housing delivery
Alongside the stamp duty overhaul, the Budget includes a major planning package aimed at unlocking “missing middle” housing such as terraces, townhouses and low-rise apartments.
Planning Minister Chris Steel said the reforms are designed to bring forward development and reduce build costs.
“The elimination of stamp duty for first home buyers complements the Federal Government’s tax reforms by supporting younger generations of Canberrans to own their own home,” Mr Steel said.
“The changes to lease variation charges will lower overall development costs and encourage builders to bring forward more ‘missing middle’ housing projects sooner.”
A key feature of the package is the Canberra House Pattern Book – pre-approved home designs available for $1,000, intended to streamline approvals and speed up construction.
“The Pattern Book will fast track more low-rise ‘missing middle’ homes that are well-designed and will fit in well with Canberra’s streets and climate,” Mr Steel said.
The government has set a target of 30,000 new homes by 2030 as it attempts to balance lower entry costs with increased housing supply.
Scenario A: The Entry-Level House
Average Purchase Price: $1,050,000
Standard Deposit (20%): $210,000
| Cost Breakdown | Old Rules (Before July) | New Rules (From July 1, 2026) |
| Stamp Duty Cost | $32,300 (approx) | $0 |
| Bank Deposit (20%) | $210,000 | $210,000 |
| Legal & Transfer Fees | $3,000 | $3,000 |
| Total Upfront Cash Needed | $245,300 | $213,000 |
Scenario B: The Typical Unit / Townhouse
Average Purchase Price: $595,000
Standard Deposit (20%): $119,000
| Cost Breakdown | Old Rules (Before July) | New Rules (From July 1, 2026) |
| Stamp Duty Cost | $16,800 (approx) | $0 |
| Bank Deposit (20%) | $119,000 | $119,000 |
| Legal & Transfer Fees | $3,000 | $3,000 |
| Total Upfront Cash Needed | $138,800 | $122,000 |