In brief
The 2026-27 Australian Capital Territory (ACT) Budget was delivered on 10 June 2026 by Treasurer Chris Steel MLA. The key focus for revenue measures was on housing affordability, with an elimination of duty for first home buyers and introduction of a range of other conveyance duty measures for certain owner-occupiers
In detail
The ACT Treasurer described the Budget as 'responsible and responsive', framing it as 'fundamentally about housing, more frontline services and caring for our community'. The headline tax measure is the complete and permanent elimination of stamp duty for all first home buyers from 1 July 2026, accompanied by a broader package of conveyance duty concessions for owner-occupiers, pensioners, eligible Disability Duty Concession Scheme (DDCS) recipients and off-the-plan and turn-key unit purchasers, and a further increase in the commercial conveyance duty tax-free threshold to $2.1m. The Headline Net Operating Balance (HNOB) is forecast to improve from -$501.7m in 2025-26 to -$323.4m in 2026-27, with a return to surplus forecast by 2028-29 ($244.2m), and net debt to Gross State Product (GSP) of 18.4% at 30 June 2027.
Conveyance duty concessions for owner-occupiers
From 1 July 2026, the Government will expand stamp duty concessions to improve housing affordability. The package has been described by the Government as representing the most material conveyance duty reform delivered under the ACT's 20-year tax reform program (which commenced in 2012-13) and is the centrepiece of the Budget's tax response to housing affordability. The key changes are:
- First home buyers - all first home buyers will no longer pay stamp duty, replacing the existing Home Buyer Concession Scheme value cap with a complete and permanent exemption with no property value cap.
- Off-the-plan and turn-key units - the existing stamp duty concession for owner-occupier off-the-plan units (which had previously been time-limited and required successive extensions) will be made permanent and expanded to cover purchasers of turn-key units, removing duty from substantially all new unit-titled 'missing middle' properties (i.e. medium density, house scale homes) for owner-occupiers.
- Eligible pensioners - eligible pensioners will no longer pay stamp duty, with the Pensioner Duty Concession Scheme also expanded to Service Pension recipients with a permanent incapacity to work, and Department of Veterans' Affairs Gold Card holders no longer required to satisfy a 12-month waiting period.
- Disability Duty Concession Scheme (DDCS) - homebuyers eligible for the DDCS will no longer pay any duty regardless of the price of the property, replacing the previous price thresholds.
Notwithstanding the expanded concessions, residential conveyance duty revenue is forecast to grow from an estimated outcome of $291.8m in 2025-26 to $299.2m in 2026-27 and $314.4m by 2029-30, reflecting forecast growth in residential property prices and transaction volumes.
Commercial conveyance duty tax-free threshold
From 1 July 2026, the commercial conveyance duty tax-free threshold will increase to $2.1m, continuing the gradual expansion of relief for smaller commercial transactions.
Land tax
Land tax assessments in 2026-27 are calculated on a valuation-based charge using the 2026 Average Unimproved Value (AUV), plus a fixed charge increasing by 5% to $1,778. Foreign investors continue to be liable for a 0.75% surcharge on the property's AUV, with marginal rates for residential properties unchanged from the prior Budget.
Lease Variation Charge - missing middle housing remission
To support uptake of the Government's Missing Middle Housing Reforms (which aim to increase development of housing types between stand-alone houses and high-rise apartments, such as townhouses, duplexes or low-rise apartments), a temporary 50% remission of the codified Lease Variation Charge (LVC) will apply to developments in RZ1 and RZ2 zones. To be eligible, developments must not have paid or deferred their LVC prior to 10 June 2026, must receive development approval before 30 June 2029, and must complete construction by 31 December 2030. The Government has also announced a wider review of the LVC framework focused on simplification.
Motor vehicle duty and registration
From 1 February 2027, motor vehicle duty rates will increase for emissions categories B, C, D and Unrated vehicles, continuing the policy of incentivising the uptake of lower-emissions vehicles. The revised duty amounts (per $100 of dutiable value) are set out below.
Vehicle category |
Below $45,000 |
Above $45,000 |
Above $80,000 |
|---|---|---|---|
AAA |
$2.50 |
$4.00 |
$8.00 |
AA |
$2.67 |
$4.41 |
$8.00 |
A |
$2.84 |
$4.81 |
$8.00 |
B |
$3.25 |
$5.59 |
$8.00 |
C |
$3.72 |
$6.44 |
$8.00 |
D |
$4.83 |
$8.00 |
$8.00 |
Non-rated |
$3.72 |
$6.44 |
$8.00 |
The Government has elected to delay the additional indexation of motor vehicle registration fees announced in the 2025-26 Budget. For 2026-27, registration fees will be indexed in line with WPI only, resulting in approximately $7.5m in revenue forgone in 2026-27.
Other rates and levies
The Police, Fire and Emergency Services Levy (PFESL) for residential and rural properties will increase by $32 to $458 in 2026-27 (consistent with prior Budgets, which set indexation at WPI plus 4.3 percentage points), with the pensioner rebate increasing by $18 to $133. PFESL revenue is forecast at $139.8m in 2026-27.
The Safer Families Levy will increase by $10 to $70 per residential and rural property in 2026-27, with further $5 per year increases for three years from 2027-28 (taking the levy to $85 in 2029-30).
The Short-term Rental Accommodation Levy (introduced at 5% in the 2025-26 Budget) will increase to 7.5% from 1 July 2027. The Utilities (Network Facilities) Tax will increase by an additional 1 percentage point above WPI for the year ending 31 March 2028.
The average increase in General Rates bills for 2026-27 (which accounts for around 28.8 per cent of ACT’s “own sourced” revenue) are expected to be up to five per cent for residential properties and eight per cent for commercial properties. Any increase in rates revenue above wage price index has been used to offset the conveyance duty measures above, as part of ACT’s long-term tax reform plan to shift from more volatile transaction based taxes to more stable land based taxes.
Payroll tax
No further payroll tax changes have been announced in this Budget. However, the payroll tax changes announced in the 2025-26 Budget take effect from 1 July 2026 for affected employers:
- The payroll tax-free threshold reduces to $1.75m of national wages.
- Firms with national wages below $20m will reduce to 6.75%.
- Frms with national wages between $20m and $50m continue to be taxed at 6.85%.
Payroll tax revenue is forecast at $1.036m in 2026-27, with revenue $78m lower over the four years to 2028-29 than the 2025-26 Budget estimate, primarily reflecting weaker year-to-date collections in 2025-26 driven by lower Commonwealth contractor and consultant spend.
The takeaway
The 2026-27 ACT Budget continues the ACT’s long-term tax reform journey, continuing to gradually shift the revenue base from taxes linked to transactions or the economic cycle to more stable land based taxes. This Budget, this reduction in conveyance taxes was predominately focused on owner-occupiers, along with a further increase in the commercial conveyance duty tax-free threshold to $2.1 million. These duty reductions are balanced against relatively small increases in General Rates and other land based levies.
Contact us
Rachael Cullen
Partner, Tax, PwC Australia
Matthew Sealey
Partner, Financial Advisory - Tax, PwC Australia
Alex Ta
Director, PwC Australia
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