Housing remains top focus in the Australian Capital Territory Budget

The Australian Capital Territory (ACT) remains in deficit in the short term, forecast at $501.7m in 2025–26 and $323.4m in 2026–27, before returning to a surplus of $244.2m by 2028-29 and $355.7m by 2029-30.

Net debt is estimated to be $11.1m in 2025-26, increasing to $14.1m by 2029-30. The low unemployment rate is expected to moderate in line with population growth by approximately 1.75 per cent.

Revenue measures 

The 2026–27 ACT Budget reinforces the Government’s long-term tax reform agenda, with a strong focus on improving housing affordability and supporting access to home ownership.

Stamp duty reform and housing measures

Abolition of stamp duty for first home buyers

From 1 July 2026, the ACT Government will abolish stamp duty for all first home buyers purchasing a property to live in. This measure represents a significant milestone in the Territory’s tax reform program, making the ACT the first jurisdiction in Australia to permanently eliminate stamp duty for first home buyers.

The reform builds on existing concessions and is intended to reduce upfront transaction costs and improve housing accessibility.

In addition, stamp duty relief will be expanded to:

• eligible pensioners, who will no longer be required to pay stamp duty;
• eligible National Disability Insurance Scheme (NDIS) participants; and
• individuals who have not owned property in the previous five years.

Expansion of concessions 

Further changes aimed at supporting housing supply were announced.

• The existing stamp duty concession for off-the-plan owner-occupier units will be made permanent and expanded to include turn-key units.
• Stamp duty will be removed from new unit-titled properties, turn-key units, including ‘missing middle’ homes.
• The Disability Duty Concession Scheme will be expanded such that eligible homebuyers will pay no duty regardless of property value.
• The Pensioner Duty Concession Scheme will be broadened to: 
  • include Service Pension recipients with a permanent incapacity to work; and
  • remove the 12-month waiting period for Department of Veterans’ Affairs Gold Card holders.
• The commercial property duty-free threshold will increase to $2.1m.

These measures are expected to improve housing mobility, support downsizing, and facilitate increased supply of ‘missing middle’ housing.

Policy context

The Government has indicated that these reforms form part of its broader objective to:

• deliver 30,000 new homes by 2030; and
• meet its commitments under the National Housing Accord.

Motor vehicle duty changes

From 1 February 2027, duty rates will increase for higher-emission vehicles in price categories under $80,000. This measure is intended to incentivise the uptake of lower-emission vehicles and align with broader sustainability goals.

Payroll tax

No further payroll tax changes are proposed in the Budget, recognising the challenging economic conditions for small business, and that payroll tax changes announced in last year’s budget come into effect from July for affected businesses.

If you wish to discuss the ACT Budget announcements, please reach out to a Grant Thornton Partner today.

Learn more about how our Stamp duty & land tax services can help you

Visit our Stamp duty & land tax page