Stamp Duty Abolished for ACT First Home Buyers from July 2026

First home buyers in the ACT are set to receive a major boost, with the territory moving to abolish stamp duty for all first home buyers from 1 July 2026.

The change was announced as part of the 2026-27 ACT Budget and will apply regardless of the buyer’s income or the value of the property. That means eligible first home buyers in Canberra will no longer need to factor stamp duty into their upfront purchase costs, which could make entering the property market more achievable for many buyers.

The ACT Government says the measure will make the territory the first Australian jurisdiction to abolish stamp duty for all first home buyers.

What is changing?

From 1 July 2026, first home buyers in the ACT will not have to pay stamp duty when purchasing a home.

Importantly, the exemption is not limited by property value or household income. This is a significant shift from many first home buyer support schemes, which often include price caps, income thresholds or other eligibility limits.

The government has described stamp duty as one of the biggest upfront barriers to home ownership. Removing it for first home buyers means eligible buyers may be able to put more of their savings towards their deposit, moving costs, settlement costs or other purchase-related expenses.

Why stamp duty matters for first home buyers

Stamp duty, also known as conveyance duty, is a government tax usually paid when property changes hands. For buyers, it can add a substantial upfront cost on top of the deposit, legal fees, inspections, loan costs and other expenses involved in purchasing a home.

This can be especially challenging for first home buyers, who may already be working hard to save a deposit while managing rent and everyday living costs.

By removing stamp duty for first home buyers, the ACT Government is aiming to reduce one of the major upfront costs that can delay or prevent buyers from entering the market.

Part of a longer tax reform plan

The ACT has been progressively reducing its reliance on stamp duty for more than a decade. The territory began a long-term tax reform program in 2012, with the broader goal of replacing inefficient transaction-based taxes with broader and more stable revenue sources.

Stamp duty has long been criticised because it is only paid when people buy property. This can discourage people from moving, downsizing, upgrading or relocating to a home that better suits their needs.

For first home buyers, the impact is more direct. It adds to the amount of money needed before settlement, which can make the path to ownership harder.

Other buyers may also benefit

The Budget announcement does not only affect first home buyers. Stamp duty exemptions are also being expanded for several other groups, including:

• Pensioners
• Eligible National Disability Insurance Scheme participants
• Home buyers who have not owned property in the past five years
• Owner-occupiers buying new unit-titled properties

The ACT Government has also announced support for what it calls “missing middle” housing, including townhouses, terraces and low-rise apartments. This includes removing stamp duty for owner-occupiers buying new unit-titled properties and continuing concessions for off-the-plan unit purchases.

These measures are designed to support more housing choice across Canberra, particularly between large apartment developments and traditional detached houses.

What this could mean for Canberra first home buyers

For eligible first home buyers, the removal of stamp duty could reduce the upfront cost of purchasing a home in the ACT.

This may help some buyers enter the market sooner, although it is still important to consider the full cost of buying and owning a home. A lower upfront tax bill does not automatically mean a buyer should increase their budget or borrow more than they are comfortable repaying.

First home buyers should still consider:

• Deposit requirements
• Loan repayments
• Interest rates
• Lender fees
• Conveyancing and legal costs
• Building and pest inspections
• Strata costs, if buying a unit or townhouse
• Council rates and ongoing property costs
• Insurance
• Emergency savings after settlement

The removal of stamp duty may improve affordability at the point of purchase, but buyers still need to assess whether the loan, property and ongoing repayments fit their personal situation.

Does this replace the First Home Owner Grant?

The ACT First Home Owner Grant ceased on 1 July 2019 and now has only a limited function. The new stamp duty changes sit within the ACT’s home buyer assistance and tax reform framework, rather than operating as a cash grant.

For many buyers, a stamp duty exemption can still be valuable because it reduces the amount required to complete the purchase.

Could this affect property prices?

Whenever buyer incentives are introduced, there is a question about whether the benefit will improve affordability or be absorbed into property prices.

Removing stamp duty reduces an upfront cost, but it may also increase demand from first home buyers. The overall effect will depend on market conditions, housing supply, interest rates, lender policy and buyer competition at the time.

The ACT Government has announced the change alongside broader housing supply measures, including plans to support close to 26,000 new homes across Canberra over the next five years. The success of the reform will likely depend not only on tax relief, but also on whether more suitable homes become available for buyers.

What should first home buyers do now?

First home buyers considering a purchase in the ACT should keep the 1 July 2026 start date in mind and confirm their eligibility before making decisions.

It may also be worth speaking with a mortgage broker, conveyancer or qualified adviser before signing a contract, particularly if buying close to the changeover date.

A broker can help you understand your borrowing capacity, compare suitable home loan options and prepare for lender assessment. They can also help you factor in upfront costs and ongoing repayments, but the right loan and purchase strategy will depend on your individual circumstances, objectives and requirements.

The bottom line

The ACT’s decision to abolish stamp duty for all first home buyers is a major housing affordability reform and a significant change for Canberra buyers.

From 1 July 2026, eligible first home buyers will no longer need to pay stamp duty, regardless of income or property value. For buyers struggling to save enough for the upfront costs of purchasing, that could make a meaningful difference.

However, buying a home is still a major financial commitment. The stamp duty saving should be considered as part of the full picture, including loan repayments, ongoing ownership costs, market conditions and long-term affordability.