Australia: Property tax proposals in 2023-2024 budget (Australian Capital Territory)
2023-2024 budget focused on housing affordability and related tax reform
Australian Capital Territory
The Australian Capital Territory (ACT) government on 27 June 2023 released its 2023-2024 budget focused on housing affordability and related tax reform.
Changes to stamp duty for home buyers
The budget includes stamp duty (tax) measures that are intended to continue the ACT government’s ongoing tax reform agenda of moving from transaction-based taxes (like stamp duty) towards a broad-based land tax.
These measures include:
- Continued reduction of the conveyance duty tax rate (for 2023-2024, the lowest owner-occupier conveyance duty rate would be reduced from 0.6% to 0.49%)
- Increase in the property price threshold for owner occupier (off-the-plan) conveyance duty concession from $600,000 to $700,000, effective 1 July 2023
Introduction of the Build-to-Rent and Affordable Housing Project Fund
A key initiative in the budget is the establishment of the Affordable Housing Project Fund to increase the social and affordable housing stock in ACT, including Build-to-Rent and community housing initiatives.
- The $60 million fund has already committed funding to four projects, including three build-to-rent projects identified as part of the 2022-2023 request for proposals process.
- The budget also includes funding for a land tax exemption to increase the availability of affordable housing properties in the ACT.
Further details of the fund and the land tax exemption are expected to be released over the coming months.
For more information, contact a KPMG tax professional in Australia:
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