Stamp Duty Reform in Australia (2026): State-by-State Progress

Overview

Stamp duty — the one-off tax paid when purchasing property — has long been criticised as an inefficient tax that discourages property transactions and penalises mobility. While reform has been discussed for decades, the ACT is the only jurisdiction that has committed to abolishing it.

ACT: Leading the Way

The Australian Capital Territory began its stamp duty abolition program in 2012 under then-Treasurer Andrew Barr. The plan involves progressively reducing stamp duty rates while simultaneously increasing annual land rates (a form of broad-based land tax). This reform is being implemented over approximately 20 years.

As the program progresses, ACT stamp duty rates are lower than they were before the reform, while land rates are correspondingly higher. The key advantage for buyers is a lower upfront barrier to entry, offset by higher ongoing annual costs.

Use our ACT Stamp Duty Calculator to see current rates, and our ACT Land Tax Calculator to understand the annual cost implications.

Other States: Discussion Without Action

Most other Australian states and territories have discussed stamp duty reform at various points, but none have committed to a comprehensive abolition program similar to the ACT's.

Key considerations in the reform debate include:

• Revenue dependence: State governments rely heavily on stamp duty revenue, making a transition financially challenging.
• Revenue volatility: Stamp duty revenue fluctuates with the property market, making budgeting difficult for governments. Broad-based land taxes provide more stable revenue.
• Equity concerns: A transition period creates winners and losers — buyers who paid stamp duty recently would miss out on the benefit of abolition.
• Political risk: Annual land tax is more visible than one-off stamp duty, making it politically difficult.

What Does This Mean for Buyers?

In states other than the ACT, stamp duty remains a significant upfront cost. Buyers should:

1. Budget for it — use our Stamp Duty Calculator to estimate your liability by state.
2. Check concessions — first home buyers may qualify for reduced or waived stamp duty. See our Compare States page.
3. Factor it into total costs — stamp duty is part of the total upfront cost. Use our Property Purchase Cost Calculator for the complete picture.
4. Consider timing — thresholds and concessions can change with state budgets. Check current rates before making offers.

Compare all states: State Comparison | Calculate duty: Stamp Duty Calculator.