ACT 2026-27 State Budget

AUTHOR

The ACT Budget 2026-27 was delivered on 10 June 2026 by ACT (Labor) Treasurer, the Hon Chris Steel MLA.

Cutting stamp duty for all ACT first home buyers and backing in the missing middle.

Stamp duty will be abolished for all ACT first home buyers from 1 July 2026

From 1 July 2026 onwards, all first home buyers of land located in the ACT that live in their first home will no longer pay stamp duty.

This makes the Territory the first jurisdiction in Australia to abolish stamp duty for all first home buyers.

This change  removes one of the biggest upfront barriers to buying a home. It opens the door for more Canberrans to enter the housing market sooner.

This complements the tax reforms announced by the Federal Labor Government which also focus on supporting Australians to own their own home.

Expanded stamp duty exemptions

The Government will expand stamp duty concessions, improving housing affordability to help more Canberrans buy a home.

Stamp duty exemptions will also be expanded:

Eligible pensioners will no longer pay stamp duty.
Homebuyers eligible for the Disability Duty Concession Scheme will no longer pay any duty regardless of the price of the property.
The commercial stamp duty tax-free threshold will increase to $2.1 million.
The Pensioner Duty Concession Scheme will be expanded to Service Pension recipients with a permanent incapacity to work, and Department of Veterans’ Affairs Gold Card holders will no longer require a 12-month waiting period.

Major package of tax cuts

The Government is also backing in planning reforms with a major package of tax cuts to support the development of the ‘missing middle’:

removing stamp duty on all new unit-titled properties bought by owner-occupiers and continuing the concession for owner-occupiers buying off-the-plan units
expanding this concession to all turn-key units (a newly constructed unit that was not sold off-the-plan), and
introducing a time-limited 50% reduction in the codified Lease Variation Charge for missing middle developments, lowering overall development costs while maintaining a return to the community.

Average residential rates

To maintain a stable property tax base, the average residential rates bill will increase by no more than 5 per cent in 2026–27, with commercial general rates rising in line with residential general rates settings.

Motor vehicle registration duty

The Government will ask Canberrans choosing to buy higher polluting vehicles to contribute more through motor vehicle duty.

However, in response to escalating fuel costs, the Government will delay the implementation of additional indexation to motor vehicle registration announced in the 2025-26 Budget.

Payroll tax

No further payroll tax changes are proposed in the Budget, recognising the challenging economic conditions for small business, and that payroll tax changes announced in last year’s budget come into effect from July for affected businesses.

Housing Supply and Land Release program (2026-27 to 2030-31)

This program sets out a clear, forward-looking pipeline to increase housing supply.

The program outlines land releases to support close to 26,000 new homes to be built across Canberra over the next five years, alongside land for commercial, community and mixed-use development.

Through a combination of land release, planning reform, and direct investment through the Budget to deliver new public, community, and affordable homes, the Government will enable 30,000 new homes by the end of 2030.

The 2026-27 ACT Budget includes $4.6 million in funding over the next two years that will support planning reform, technical studies and precinct readiness, accelerating housing delivery and maintaining momentum in the housing pipeline.

Grow Canberra’s visitor economy

The Government will grow Canberra’s visitor economy by up to $1 billion by 2030 through a number of new investments.

The four year, $72 million investment in these initiatives will grow the visitor economy, strengthen Canberra’s national and international profile, and support jobs across tourism, hospitality, and events.

New Public Housing Pipeline program

The ACT Government will begin a new Public Housing Pipeline program to build and buy an additional 450 new public homes, supported by the Territory Priority Projects legislation which means Canberrans can move into these homes sooner.

A new Northside Hospital

The ACT Government is delivering a new hospital on Canberra’s northside to provide modern facilities, improve patient access and support Canberra’s growing health needs.

The new seven-storey clinical services building represents the first stage of redevelopment of the North Canberra Hospital campus and will include more than 300 treatment spaces.

The Budget delivers a carefully staged investment of $1.34 billion over the next seven years, prioritising critical health infrastructure while maintaining a responsible approach to the Territory’s finances, bringing the Government’s total commitment to the new northside hospital to almost $1.5 billion over a decade.

Cost of living relief

A new $5.2 million Housing Crisis Support Fund will provide targeted assistance to low-income households experiencing rental stress, helping people stay in safe and stable accommodation.

 The Fund includes:

Direct support for short-term rental costs – grants covering up to four weeks’ rent (capped at $2,500) to help people stay in safe, secure and stable housing during periods of financial difficulty.
A new $250 Crisis Support Payment to assist with essential household expenses such as utilities, insurance, and basic furnishings.

Local infrastructure

The ACT Government is delivering a better and more liveable Canberra with further investments in suburban infrastructure, frontline city services, and Canberra’s parks and natural spaces.

The 2026-27 Budget will provide funding to support four new local shopping centre upgrades at Kingston, Chisholm, Cooleman Court and Kippax to improve public spaces at the shops with new seating, lighting, crossings, paving and landscaping, and other improvements.

Supports for people impacted by domestic, family and sexual violence

The Government will invest $44.2 million over four years to strengthen frontline services and provide longterm funding.

This investment reflects the Government’s commitment to addressing the current crisis and preventing future violence through tailored, responsive services. It is also focused on ensuring frontline services are there when the community needs them most.

The cost of these initiatives will be partly offset by an increase to the Safer Families Levy from 2027-28 of $5 a year for three years.

Major investment in community services

An investment of $58.8 million in new funding to the sector ensures organisations have the confidence to plan into the future, grow and retain their staff and provide high-quality services and care to the community.

$23.7 million in permanent uplift to the community sector that supports a responsive and evolving service system and focuses on areas of greatest need. This will provide organisations that need it most with direct new funding. This funding builds on the previously announced community sector funding boost provided in 2025-26 and supports the sector respond to the changing needs of the Canberra community.
$14.8 million in ongoing funding for community legal assistance organisations and other justice support, recognising sustained growth in demand and providing certainty to these organisations about their capacity to support Canberra’s most vulnerable people.
Legal Aid ACT will receive $2.15 million to boost capacity and assist in responding to rising demand.
$15.4 million in expanded and new funding to support more homelessness services, sustaining their long-term viability and responding to increased demand, this includes $2.3 million for Samaritan House, $1.4 million for Blue Door, and $2.1 million for RoadHouse.
$894,000 in continued and expanded funding to support services and advocacy for LGBTQIA+ Canberrans, including dedicated services for LGBTQIA+ parents and their children.
$100,000 in new funding to support Sexual Health and Family Planning ACT deliver essential sexual and reproductive health services in 2026-27.