- Applies to off the plan purchases of apartments and townhouses up to $500K
- Potential savings of up to $10,360
- Stamp duty will also be reduced across other property types
This morning, the Australian Capital Territory announced it will be ending stamp duty.
As of tomorrow, no stamp duty will be applied to off the plan apartment and townhouse purchases up to $500,000.
The Territorian government said for a house purchased at that price, the saving will be $10,360.
Without prior tax reform starting in 2012, the government said stamp duty would have been up to $20,500.
It comes as this year saw continued and wide calls for an end to stamp duty.
Back in February, a REIWA survey showed 90% of respondents considered stamp duty to be a significant barrier to homeownership.
Similar calls for an end or change to stamp duty were made by both the HIA and REINSW in March, VCCI also called for changes in Victoria.
It is no surprise stamp duty is an attractive revenue stream, The Property Tribune reported in the year-to-February 2021, the New South Wales Government pocketed $6.2 billion from stamp duty, that number eclipsed by 2017 figures, when the state raised $7.4 billion through the duty.
More recently, in April alone, NSW cashed in on $870 million in stamp duty revenue.
ACT Stamp Duty Comparison Chart
| House price ($) | Without tax reform ($) | 2021-22 Duty ($) | Change ($) | Change (%) |
|---|---|---|---|---|
| 300,000 | 9,500 | 3,560 | – 5,940 | – 63% |
| 400,000 | 15,000 | 6,960 | – 8,040 | – 54% |
| 500,000 | 20,500 | 10,360 | – 10,140 | – 49% |
| 600,000 | 26,500 | 14,680 | – 11,570 | – 44% |
| 700,000 | 32,000 | 19,000 | – 13,000 | – 41% |
| 800,000 | 37,750 | 24,110 | – 13,640 | – 36% |
| 900,000 | 43,500 | 30,010 | – 13,490 | – 31% |
| 1,000,000 | 49,250 | 35,910 | – 13,340 | – 27% |
Source: ACT Government.
