ACT Scraps First Home Buyer Stamp Duty in a National First — Will Other States Follow?

The Australian Capital Territory has become the first Australian jurisdiction to fully scrap stamp duty for first home buyers, The Adviser reported on 8 July 2026. The overhaul reportedly reaches well beyond first-time purchasers, continuing the ACT's long-running transition away from transactional property taxes.

What the Reform Does

Stamp duty has long been one of the largest upfront costs in an Australian property purchase — often $20,000 to $50,000 on a typical home, payable in cash at settlement on top of the deposit. For first home buyers in Canberra, that bill now disappears entirely. The ACT has been phasing down stamp duty for over a decade in favour of broader land-based revenue, and this step completes the journey for first home buyers.

Why It Matters Beyond Canberra

• Deposit power. Every dollar not paid in stamp duty is a dollar that can go toward the deposit. For a buyer saving toward a 10 per cent deposit, removing a $30,000 duty bill can bring the purchase forward by years — or lift them into a lower loan-to-value ratio (LVR) band with better pricing.
• Borrowing capacity is unchanged, but cash flow isn't. Stamp duty doesn't affect serviceability calculations directly, but it consumes savings that would otherwise reduce the loan amount needed.
• Pressure on other states. NSW and Victoria have both debated stamp duty reform for years. A working full exemption in the ACT gives reform advocates a live case study, though buyers elsewhere should not bank on imminent change.

What Buyers in Other States Can Do Now

Most states already offer partial first home buyer concessions with price caps — but those caps often exclude buyers in Sydney and Melbourne's middle suburbs, and self-employed buyers can struggle to document income for mainstream lenders regardless of the duty bill. At MPFG Capital, we see three practical takeaways:

1. Know your state's concession thresholds precisely. Buying marginally under a cap can save tens of thousands.
2. Factor duty into your total funding position early. A pre-approval that ignores stamp duty overstates what you can actually settle on.
3. If savings are thin after duty, structure matters. Options such as higher-LVR lending, family guarantees or Alt Doc assessment for the self-employed can bridge the gap that stamp duty creates.

MPFG's View

The ACT reform is a genuine structural improvement for first home buyers, not a demand-side subsidy that bids up prices the way grants can. If replicated in the larger states, it would meaningfully lower the entry barrier. Until then, the gap between what buyers save and what settlement actually costs remains a financing problem — one that flexible lenders are often better placed to solve than one-size-fits-all bank criteria.

This article is general information only and does not constitute credit, tax or financial advice. Lending criteria, terms and conditions apply. Consider your circumstances and seek professional advice before acting. MPFG Capital Pty Ltd — Australian Credit Licence 553698.