If you are looking to buy property, the good news is that you can now expect to pay lower stamp duty on your purchase.

On Tuesday, Andrew Barr released the 2017/18 Budget which confirmed the Government’s ongoing commitment to phase out stamp duty in the ACT. As expected, the amount of stamp duty payable on a residential purchase in the ACT will be reduced. As a guide, a buyer will save nearly $1,000 for a property with a purchase price of $650,000.

This saving will only apply to contracts exchanged after 6 June 2017. Any contracts already exchanged will be liable for stamp duty at the rate applicable at the date of exchange.

Interestingly, the NSW Government has taken a different approach by re-introducing a concession on stamp duty for existing properties as well as increasing the purchase price threshold for the concession to apply. If you are a first home buyer in NSW you will now pay no stamp duty at all for residential purchases of up to $650,000.

Commercial properties have received the biggest benefit under the ACT changes, with all commercial properties under $1.5 million receiving a 50% reduction in the amount of stamp duty payable, with the stamp duty on all commercial transactions to be completely phased out by 2019.

These changes coincide with the implementation of a new ‘barrier free’ model for stamp duty in the ACT expected to start next month. This new system will see one of the biggest changes in nearly 20 years to the way stamp duty is paid. Follow HKH on Facebook to keep up to date with changes to stamp duty, and to see our upcoming series on stamp duty concessions: “Trips, Tricks and Traps for Young Players”.