State government to unveil new tax breaks, planning reforms, and construction incentives
The ACT government said its budget, to be announced today, outlines a broad package of housing initiatives aimed at expanding supply, improving affordability, and supporting a more diverse mix of homes across the territory.
The state government reaffirmed its goal to deliver 30,000 new homes by 2030, in partnership with the federal government. It said the latest budget lays the groundwork for that target by supporting both immediate construction activity and long-term planning reform.
Among the headline measures is an increase to the stamp duty concession threshold, which will rise to $1.02 million from July 1 for eligible buyers. The revised threshold applies to the Home Buyer Concession Scheme, the Pensioner Duty Concession Scheme, and the Disability Duty Concession Scheme, and will be indexed annually to the Canberra Consumer Price Index.
Stamp duty exemptions will be available to qualifying Canberrans purchasing off-the-plan apartments, townhouses or unit-titled homes in suburban RZ1 zones under the new threshold. The government said the move is intended to promote more housing options through dual occupancy and other forms of medium-density development in suburban areas.
The budget also provides funding for 85 new public housing dwellings delivered via community housing providers under the Housing Australia Future Fund Facility. It allocates additional support to the Affordable Housing Project Fund and includes delivery of 300 affordable Build-to-Rent homes. Seventeen new social housing townhouses will be acquired in Coombs under the Social Housing Accelerator, and funding continues for the Growing and Renewing Public Housing Program.
The ACT Government’s Housing Supply and Land Release Program sets out plans to release government-owned land for nearly 26,000 homes over the next five years. The budget supports this effort with planning reforms expected to unlock additional development opportunities on leased land.
In addition to land supply, the government is investing in planning system improvements. Budget funding will support higher-density housing in well-located areas near public transport and shops, while also backing implementation of the new Planning Act. The aim is to streamline development approvals and provide greater clarity for developers and the community.
To meet the rising demand for skilled construction workers, the government will raise training subsidies to 90% for key trades including carpentry, plumbing, tiling and bricklaying. The budget also supports the Try-a-Trade program in public high schools to encourage young women to enter the construction industry. Apprentices and trainees will receive a $250 cost-of-living payment, with an additional $250 for first-year participants, supplementing Commonwealth incentives already in place.
Industry has responded positively to the budget’s focus on housing. Property Council ACT and Capital Region executive director Ashlee Berry described the commitments as a step in the right direction.
“The government is right – to get more homes built means we need to get the planning system working, unlock land, and tackle the cost barriers holding back supply,” Berry said.
She added that while increased land release volumes are welcome, success will depend on implementation. Berry noted that many sites remain unsold through the Suburban Land Agency, suggesting that affordability is a greater issue than availability.
“It’s great to see more people getting help into the market, but demand-side measures only go so far. If we want to bring prices down, we need more supply at all price points,” she said.
Berry also welcomed the increased investment in apprenticeships and urged continued focus on attracting young people to the construction sector. She said the private sector would play a critical role in housing delivery and called for consistent policy settings that support investment.
The Property Council said it would continue working with the government to progress zoning reform and reduce post-approval delays, particularly for medium-density housing in well-serviced areas.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
