Key takeaways:
Eligible first-home buyers in the ACT will be exempt from conveyance duty from 1 July 2026, regardless of property value.
Upfront savings could reach tens of thousands of dollars, potentially reducing the cash needed to buy a home.
Buyer activity may increase in some parts of the market as more first-home buyers become eligible for support.
Market conditions still matter, with borrowing capacity, interest rates and affordability continuing to influence decisions.
An Aussie Broker can help you understand your borrowing power and explore what may be achievable under the new rules.
For many aspiring homeowners, saving a deposit is only part of the challenge. Stamp duty can add tens of thousands of dollars to the upfront cost of buying a home, often delaying entry into the market.
From 1 July 2026, that barrier is set to disappear, with the ACT Government abolishing conveyance duty (commonly known as stamp duty) for eligible first-home buyers.
The ACT has been progressively reducing reliance on conveyance duty as part of a long-running tax reform program.
The latest changes come at a time when Canberra's property market has shown signs of slowing.
Cotality’s national Home Value Index for May data shows dwelling values fell 0.2% in May and 0.5% over the quarter, although values remain 4.3% higher than a year ago. Canberra's median dwelling value currently sits at $890,555.
While values have eased from recent highs, Canberra remains one of Australia's more expensive housing markets, with dwelling values sitting just 2.1% below their May 2022 peak.
The question now is whether removing one of the largest upfront buying costs could encourage more first-home buyers back into the market.
You might also be interested in: How does stamp duty work in the ACT?
Why removing stamp duty matters for buyers
For many first-home buyers, stamp duty has historically been one of the biggest hurdles to home ownership.
Scott Bolton, Aussie Broker at Aussie Manuka in Canberra, said removing the cost could make entering the market significantly easier.
“The benefit for first-home buyers is that they can come into the market and completely bypass the stamp duty exposure,” he said.
Bolton said the change removes a key decision-making barrier that previously influenced what buyers could purchase.
“The first thing with first-home buyers is it's taken away the stress part of buying at a million dollars or less. Now that's taken away completely,” he said.
For buyers already stretching to save a deposit, reducing upfront costs may improve affordability and reduce the amount of cash required before settlement.
According to Bolton, buyers using the Federal Government's Home Guarantee Scheme alongside the ACT stamp duty exemption could potentially save tens of thousands of dollars in upfront costs, depending on their circumstances.
For some households, that may mean entering the market sooner than planned. For others, it may simply provide greater flexibility when choosing a property.
For example, A first-home buyer purchasing a $900,000 home could potentially save more than $20,000 in upfront costs through the ACT stamp duty exemption.
An Aussie Broker can help you understand which programs may be available and how they could fit into your home buying plans.
You might also be interested in: What you need to know before you buy
Could buyers have more choice?
Recent data suggests first-home buyer activity has slowed in Canberra.
Australian Bureau of Statistics (ABS) lending data shows the number of first-home buyer loan commitments in the ACT fell from 969 in the December 2025 quarter to 862 in the March 2026 quarter, an 11% decline.
While activity eased over the quarter, the March result remains relatively strong by historical standards.
ABS data shows the highest quarterly total on record was 1,004 first-home buyer loan commitments in the December 2020 quarter, during a period of significant government stimulus and historically low interest rates.
The recent decline suggests some buyers may have delayed purchasing decisions amid affordability pressures, higher interest rates, and broader market uncertainty.
PRD Chief Economist Dr Diaswati Mardiasmo believes removing stamp duty could help bring some of those buyers back into the market.
“The abolishing of stamp duty from 1 July will definitely invigorate the first-home buyer market,” she said.
She noted that Canberra's market has softened modestly in recent months, creating a potentially different environment for buyers than in previous years.
While house prices remain elevated, slower price growth and lower competition may give some buyers more time to assess their options and prepare financially.
That doesn't necessarily mean demand will surge overnight.
Borrowing capacity, household budgets and interest rates remain significant factors in purchasing decisions.
However, removing a major upfront cost may improve access for buyers who were previously close to entering the market but had not yet accumulated enough savings.
For some households, that may not just influence when they buy, but also the type of property, suburb or price range they consider.
Previously, many first-home buyers focused their search around existing concession thresholds, according to local real estate agents.
With those limits removed, some buyers may have greater flexibility when considering where and what they purchase.
Canberra real estate agent Mark Larmer believes some buyers may begin looking at homes they previously ruled out because of stamp duty costs.
Larmer said he is already seeing signs of this in the market. One three-bedroom home in Ngunnawal currently on the market has attracted strong interest from first-home buyers, highlighting the demand that already exists for affordable family homes in Canberra.
Larmer says 33 Bunduluk Crescent in Ngunnawal has attracted strong interest from first-home buyers.
“It's a good, affordable property under $1 million with three bedrooms, an ensuite and a double garage,” he said.
“I reckon that early $1 million, $1.1 million, or even $1.2 million price bracket in Canberra is going to become more sought after and targeted by first-home buyers."
For some households, the change may mean considering a different suburb, property type or longer-term housing plan than they otherwise would have.
That could create additional competition in parts of the market that have traditionally been dominated by upgrader buyers.
At the same time, apartment markets may continue to face different dynamics.
Canberra has a significant pipeline of new apartments and units expected to come online in coming years, potentially providing additional housing choice for first-home buyers, Larmer added.
Larmer said some first-home buyers may also find opportunities in parts of the market where supply remains relatively high.
For buyers considering apartments or smaller townhouses, he believes the current market offers a level of choice that has been difficult to find in recent years.
“You can probably get as big a discount on that property type as you're ever going to get because of the high stock levels,” he said.
However, market conditions can change and future property performance remains uncertain.
Greater choice and reduced competition may give some buyers more time to compare properties and negotiate.
What buyers should consider before making a move
While removing stamp duty may reduce upfront costs, it doesn't change how much a lender is willing to lend.
Buyers still need to meet lending requirements and demonstrate they can comfortably manage repayments.
That's why understanding borrowing power remains just as important as understanding government incentives.
Even if upfront costs fall, ongoing loan repayments, living expenses and interest rates will continue to influence what may be achievable.
Bolton said many first-home buyers are increasingly focusing on apartments and townhouses as a way to enter the market sooner.
“What we're talking to buyers about now is getting as much as they can from the bank for their purchase,” he said.
For some buyers, entering the market with a smaller property may provide a pathway towards upgrading later, rather than waiting longer to purchase a detached house.
An Aussie Broker can help buyers understand how changes to government support schemes may interact with their borrowing capacity and what options may be available based on their circumstances.
What should Canberra first-home buyers do next?
For prospective first-home buyers, the ACT's stamp duty abolition may reduce one of the biggest upfront costs associated with purchasing a home.
However, government support is only one part of the equation.
While the ACT's stamp duty abolition could reduce one of the biggest upfront barriers to home ownership, buyers should still consider their long-term goals, budget and eligibility for available support schemes before making a purchase decision.
An Aussie Broker can help you understand your borrowing power, compare loan options and determine what may be achievable based on your circumstances.