Tax reform in the ACT continues to operate in relative overdrive with next month’s abolition of stamp duty for a large majority of commercial property transactions the latest move.
Following changes to residential stamp duty regulations, duties on commercial property transfers halved in July 2017, for all transactions under $1.5 million.
Starting 1 July 2018, the ACT government has taken the reform a step further by abolishing all duties on commercial property transactions valued under $1.5 million. The government calculates this reform will eliminate duty obligations on all commercial property transactions by around 70%.
The reform will make commercial property investing in Canberra a more affordable proposition for owner-occupiers seeking to expand, and for investors and self-managed super funds, said Angus Raine, Executive Chairman Raine & Horne Group.
“Stamp duty is the equivalent of tens of thousands of extra dollars to fund a commercial property transaction, so this decision will be sure to encourage more activity in Canberra’s entry-level commercial markets,” said Angus.
“The ACT exemption shows other state and territory governments that stamp duty is an inefficient tax, and that it's possible to extend some stamp duty breaks for residential and commercial real estate buyers in their jurisdictions.”