ACT Budget 2026
Written by Harry Kay – Special Council Litigation.
The 2026-27 Budget, delivered on 10 June 2026, contained multiple changes to aspects of residential and commercial property in the ACT.
Residential property
Applicable from 1 July 2026, one of the most significant changes is the abolishment of stamp duty for all first home buyers of land located in the ACT that live in their first home. The ACT is the first jurisdiction in Australia to abolish stamp duty for all first home buyers.
This change removes one of the biggest upfront hurdles to buying a home, and opens the door for more Canberrans to enter the housing market sooner. The change complements the tax reforms announced by the Federal Government which also focus on providing home ownership support to Australians.
The Budget also:
- removed stamp duty on all new unit-titled properties bought by owner-occupiers;
- continued the concession for owner-occupiers buying off-the-plan units, expanding the concession to all turn-key units (a newly constructed unit that was not sold off-the-plan);
- removed the requirement for eligible pensioners to pay stamp duty; and
- abolished all stamp duty for homebuyers eligible for the Disability Duty Concession Scheme, regardless of the price of the property.
Residential rates are designed to increase, on average, by no more than 5 per cent in 2026–27, noting the introduction of a new Average Unimproved Value threshold at $1 million with an applicable rates figure of 5.734%, which means that for every $1,000 over $1 million, a home owner will be paying an extra $0.90.
Commercial property
In the ACT, the stamp duty threshold for commercial property purchases has been increased to $2.1 million. Commercial transactions at or below this threshold are exempt from stamp duty, while amounts over $2.1 million attract a flat rate of $5.00 per $100 applied to the total transaction value.
The ACT Government has also approved Major Plan Amendment 04, introducing significant middle housing reforms which will permit townhouses, terraces, and low-rise apartments (up to 2 storeys in RZ1 and 3 storeys in RZ2) with basement parking areas in RZ1 (Suburban) and RZ2 (Suburban Core) residential zones.
The reforms open up RZ1 and RZ2 zones, which make up the majority of residential land, to a broader mix of housing types, including terraces, townhouses and low-rise apartments.
The Budget’s targeted reform of ‘missing middle’ housing has key measures including:
- a temporary 50 per cent remission of Lease Variation Charges (LVC) for eligible “Middle Housing’ developments;
- expansion of stamp duty concessions for newly built unit-titled and turn-key homes (outlined above); and
- investment in the Canberra Housing Pattern Book, providing pre-approved housing designs to streamline approval processes.
The LVC remissions for developments in Suburban (RZ1) and Suburban Core (RZ2) zones will apply to eligible developments varying a Crown Lease in an RZ1 or RZ2 zone where:
- 1 or more dwellings are added;
- the lease variation charge is deferred on or after 10 June 2026;
- development approval for the lease variation is received before 30 June 2029; and
- construction of all dwellings is completed by 31 December 2030
Moving forward
From a property law viewpoint, the practical application of the above concessions will be vital in land owners realising the available benefits.
To gain the maximum benefit of available duty concessions, purchasers will now need to carefully consider issues such as contract timing, eligibility requirements, and the way in which property transactions are structured.
Developers will need to pay close attention to how the (temporary) LVC remission regime may affect project timings and feasibility, and whether the ‘Missing Middle’ reforms may result in, or require, a reassessment of decisions relating to site acquisition and development strategies.
Terracon Legal is well equipped to assist clients in determining issues such as:
- how the duty concessions may apply;
- whether the client/transaction meets the eligibility requirements for accessing the duty concessions;
- whether a proposed development qualifies for the LVC remission; and
- planning compliance for Middle Housing developments.