Share with your friends

2018-19 ACT Budget: focus on property development

2018-19 ACT Budget: focus on property development

Michelle Bennett and Dorian Beaver discuss the recently launched ACT 2018-19 budget.


Related content

Australia Parliament house in Canberra

The Australian Capital Territory (ACT) released its budget this month. The key ACT revenue initiatives are:

  • From 1 July 2018, transfer duty will be abolished on commercial property transactions of $1.5 million or less. Commercial property transactions greater than $1.5 million will incur a flat 5 percent rate. 
  • From 1 July 2018, the ACT will amend its first home buyer concession from a property value test to a household income test. Under the change, first home buyers with a household income below $160,000 will not pay stamp duty regardless of the value of the first home. The budget papers state that this is due to grants having an inflationary impact on prices.
  • From 1 July 2018, foreign investors who own residential property in the ACT will be liable for a surcharge of 0.75 percent of the property’s average unimproved value, in addition to the applicable marginal land tax rate. The introduction of the surcharge is consistent with most other States, although the rates vary. 
  • The Government will develop a business intelligence and data analytics compliance program for landholder duty. Details are not yet available.

Developers active in the ACT should consider how the change to the first home owner incentives will impact pricing and recent acquirers of companies or trusts which own land in the ACT can expect a call.

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Liability limited by a scheme approved under Professional Standards Legislation.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

Connect with us


Want to do business with KPMG?


loading image Request for proposal