Australia: Conveyance duty concessions in 2025-2026 budget (Australian Capital Territory)

Includes a package of revenue measures that continue the tax reform program of shifting revenue from conveyance duty to general rates

The Australian Capital Territory (ACT) government on June 24, 2025, released its 2025-2026 budget focused on continuing the tax reform program of shifting revenue from conveyance duty to general rates. Tax measures in the budget include the following:

Conveyance duty concessions: Increased eligibility for conveyance duty concessions would be achieved by raising the price threshold for the Home Buyer, Pensioner Duty, and Disability Duty Concession Schemes from $1,000,000* to $1,020,000 from July 1, 2025.
Commercial general rates: A new high-value threshold has been introduced for commercial general rates at $5 million average unimproved value (AUV) from 2025-2026 onwards, with a tax rate of 5.9670% in 2025-2026.
Residential general rates: A new threshold for high-value residential non-unit general rates at $1 million average AUV has also been introduced from 2025-2026 onwards, with a tax rate of 0.5734% in 2025-2026.
Utilities network facilities tax: The utilities network facilities tax payable by owners of network facilities on land in the ACT would increase by an additional 2.5 percentage points above the wage price index for 2025-2026 and 2026-2027.
Levies to support the public health system: A new four-year health levy would be introduced for all residential, commercial and rural properties to address the increasing costs in the public health system.
Ambulance levy: The ambulance levy rate paid by private health insurers would be increased by an additional 10% from January 1, 2026.
Motor vehicle duty: From September 1, 2025, motor vehicle concessions for zero-emission vehicles would be reduced to ensure a minimum 2.5% duty is paid on new transactions.
Payroll tax: The payroll tax-free threshold would be reduced from $2 million to $1.75 million from July 1, 2026. The tax rate would be reduced to 6.75% for firms with national wages below $20 million.

For more information, contact a KPMG tax professional in Australia:

Candice Wong | candicewong@kpmg.com.au

Jane Crisp | jcrisp@kpmg.com.au

Myuri Kuganathan | mkuganathan@kpmg.com.au

*$=Australian dollar

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Australia: Conveyance duty concessions in 2025-2026 budget (Australian Capital Territory)

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