The ACT’s residential stamp duty is to be cut further with the removal of stamp duty for certain off-the-plan purchases.
Announced by Chief Minister, Andrew Barr, the cuts are to apply to off-the-plan properties up to $600,000 and are expected to save buyers up to $15,720 on their purchases.
The move expands on the Territory’s stamp duty scheme introduced last year for properties of up to $500,000, and is to begin on 1 April.
Mr Barr said the change would ensure the concession continued to support housing purchases by owner occupiers at the entry level of the market and was designed to encourage an increased supply of new properties below the duty threshold.
He said the extension of the scheme was “a signal to the supply side to build more properties under $600,000”.
“So, it’s not chasing the existing housing stock, it’s requiring new housing to be built, which adds to the supply side of that supply and demand interaction,” Mr Barr said.
“Government will look to further extend the concession annually.”
The Chief Minister said the stamp duty policy was focused on “the 80 per cent of the housing market that is within the existing city footprint”.
“Canberra can’t sprawl outwards forever,” he said.
“There are obvious geographic boundaries; we can’t develop in our water catchment, that would be insane.
“And there are massive costs associated with endless urban sprawl,” Mr Barr said.
