Downsizers will be among the winners from an ACT Government decision to remove stamp duty on off-the-plan purchases up to $600,000.
The decision, announced on 15 March 2022 and to come into effect from 1 April 2022, will save buyers up to $15,720.
ACT Chief Minister Andrew Barr said the announcement is a significant expansion of the stamp duty removal scheme the government introduced last year.
The 15 March 2022 announcement will see the zero stamp duty scheme’s price cap increase from $500,000 to $600,000.
Purchasers will need to buy an off-the-plan unit or townhouse.
In addition, at least one buyer must live in the home continuously for at least one year, starting within 12 months of the date of completion (settlement date) of the off the plan agreement.
Mr Barr said the government will look to further extend the concession annually.
“The ACT Government is continuing to remove inefficient taxes on properties at the entry level of the housing market to make it easier for Canberrans to purchase their first home or downsize to a property that better suits their needs,” Mr Barr said.
“These tax incentives are also designed to encourage an increased supply of new properties below the duty threshold.”
Canberra is seeing a far greater number of new apartments, in part spurred by the construction of light rail and planning policies to activate its centres. These are popular among a range of buyer cohorts, including downsizers.
The ACT Government also has a separate scheme which allows pensioners to avoid paying any stamp duty on any home purchase up to $490,000, if the home will be their principal place of residence.
Find out more:
- Click here for the best range of Canberra downsizer-friendly new apartments
- Find out more about the WOVA project at Woden, which downsizers can access with a zero cash deposit
- Downsizing to an apartment or townhouse: here are 13 tips to help you make the move
- Official ACT Government off-the-plan stamp duty concession page
Learn about the different downsizing options on offer, and insider tips on making the move, in our just-released Ultimate Guide to Downsizing 2022.
