State and Territory budgets 2025 – stamp duty and land tax

Australian Capital Territory

Expansion of Affordable Housing Land Tax Exemption Scheme: The property limit for the Affordable Community Housing Land Tax Exemption Scheme has been raised from 250 to 1,000 properties. This program reduces rental costs for low-income individuals and provides property owners with complete land tax exemption when they lease their properties to qualifying tenants via registered community housing providers at below 75% of market rent. The higher cap allows more property owners and eligible tenants to access the scheme's benefits.

Adjustments to stamp duty concessions: Beginning 1 July 2025, property price thresholds for major stamp duty concessions will be automatically indexed annually to Canberra's Consumer Price Index. This adjustment ensures eligible first homebuyers maintain access to stamp duty concessions as property values rise, preserving the real value of these benefits. For 2025-26, the threshold will be set at $1.02 million for the Home Buyer Concession Scheme, Pensioner Duty Concession Scheme, and Disability Duty Concession Scheme.

Northern Territory

Broadening of stamp duty exemptions for charities and not-for-profit entities: Beginning 1 July 2025, the stamp duty exemption available for charities and not-for-profit entities will be simplified and broadened by removing the "commercial and competitive" restrictions. Charities and not-for-profit entities are no longer required to substantiate that acquired property is used solely in a manner that is not commercial or competitive.

New South Wales

Extension of build-to-rent (BTR) concession for land value for land tax, surcharge land tax and surcharge purchaser duty tax purposes: New BTR development owners can apply for a 50% reduction in land value when calculating land tax, surcharge land tax, and surcharge purchaser duty. This concession, which previously expired on 31 December 2039, now applies permanently from the 2026 land tax year for eligible developments. Additionally, Australian corporations can seek exemptions or refunds from foreign purchaser duty and land tax surcharges for new BTR projects, with this benefit also now available permanently rather than ending in 2039, provided ongoing eligibility criteria are met.

Extension of Revenue NSW tax integrity program: Additional funding (approximately $744m across the next four years) has been allocated to Revenue NSW to boost compliance activity, in relation to avoidance of tax.

Queensland

Abolishing transfer duty for first home buyers buying a new home: Starting 1 May 2025, first home buyers are exempt from transfer duty (or stamp duty) when purchasing newly constructed homes or vacant land for building purposes. This stamp duty elimination covers all new residential properties for first-time buyers, enabling Queenslanders to reduce costs when buying homes that meet their specific needs.

Streamlining of ex gratia relief for land tax foreign surcharge and additional foreign acquirer duty to support investment and housing supply: The Government has committed to simplifying and streamlining the ex gratia relief process for additional foreign acquirer duty and land tax foreign surcharge. This relief is available to Australian-based foreign entities whose contributions to residential housing development or the local economy and community reach specific benchmarks. Process improvements will give eligible applicants, especially property developers who boost residential housing supply, more certainty and faster processing times. These changes support broader initiatives to increase housing supply and affordability. Working with industry through the re-established Property Consultative Committee, the Government will identify and implement updated ex gratia criteria to encourage new housing development and enhance Queensland's appeal as an investment destination. Full details will be completed by the end of 2025.

Introduction of a "windfall tax": Introduced as a revenue protection measure in the Revenue and Other Legislation Amendment Bill 2025, the windfall tax will counteract any entitlements taxpayers may have if foreign surcharges for stamp duty and land tax are deemed constitutionally invalid (especially in the context of the ongoing G Global case). If, by reason of constitutional invalidity, the taxpayer is subsequently entitled to a refund of foreign surcharge paid, the measure will recover the refund by way of the new windfall tax. This windfall tax will only be imposed as an alternative, and not in addition to, the foreign surcharge.

South Australia

No changes announced.

Tasmania

No changes announced.

Victoria

Extension of off-the-plan duty concession: The stamp duty concession for off-the-plan apartments and townhouses has been extended for 12 months, and the new end date is 21 October 2026.

Western Australia

Increase in land value threshold for first home-owner exemptions / reductions for stamp duty: For the purchase of vacant land, the land value threshold for a stamp duty reduction for first home-owners has been increased to $450,000 from $400,000, with a total exemption for vacant land with a value under $350,000 (up from $300,000). For the purchase of existing homes, the threshold for reduction has been increased to $700,000-$750,000 (depending on region) from $600,000, with a total exemption for homes with a value under $500,000 (up from $450,000).

Extension of off-the-plan duty concession: The off-the-plan duty concession for eligible apartment and townhouse purchases has been expanded in several key ways. The concession has been extended until 30 June 2026, and the threshold for duty exemption for pre-construction contracts has been increased to $750,000 from $650,000 (with a 50% reduction for properties valued over $750,000). This threshold increase is mirrored for under-construction contracts, with a 75% and 37.5% concession for each respective tier. The scope of the concession has also been expanded to include off-the-plan purchase or all strata scheme or community titles (building) scheme dwellings.