Minister Barr: New stamp duty exemption to support more dual occupancy homes
- Written by ACT Government
Released 25/10/2023
The ACT Government will introduce a new stamp duty exemption for dual occupancies on suburban residential blocks to further progress housing choice, access and affordability.
The stamp duty exemption will apply to the first transfer of unit-titled dwellings on suburban residential blocks (RZ1) for purchases valued up to $800,000 from 27 November 2023 until 30 June 2026.
The introduction of the exemption will coincide with the commencement of the new Territory Plan, offering Canberrans more housing options while retaining planning and design elements that continue to make Canberra one of the most liveable cities in the world.
The new Territory Plan will allow dual occupancy developments on large blocks. Any block over 800 square metres in an RZ1 zone will be able to accommodate a modest second dwelling, up to 120 square metres in size, and be able to unit title that second dwelling (enabling it to be individually sold).
The Government is also introducing changes to the lease variation charge (LVC) – a windfall gains tax – to support the development of more dual occupancy homes in Canberra.
Between the commencement of the new Territory Plan and 30 June 2026, the Government will give lessees the choice on how the LVC is calculated for maximum number of dwelling lease clauses on RZ1 blocks, between the codified values or 75 per cent of the value uplift as measured by an accredited valuer.
This will put the choice in the hands of the lessees as to whether they prefer the certainty of the codified values or the flexibility to seek a bespoke valuation to test the value uplift.
The temporary LVC changes will also enable the Government to monitor developments and sales to ensure codified values are then set at the right level.
Both the stamp duty exemption and LVC changes will support the development of more dual-occupancy homes in our suburbs, providing more opportunities for Canberrans to find a home, including existing families looking to downsize in the suburbs they’ve called home for many years.
For more information, visit the ACT Revenue Office website: revenue.act.gov.au
- Statement ends -
Andrew Barr, MLA | Media Releases
