Impacts of reforms to date stage 1 Revenue neutralityChanges in residential general rates to date for houses & unitsImpact of tax reform on householdsImpact of tax reform on businessStage 2 reforms 2017-18 - 2021-22 Commercial conveyance duties removed for most transactions from 2018-19 Residential Conveyance duties continue to reduce every year General rates increases moderated & more equitable
Commercial conveyance duties removed for most transactions from 2018-19
The ACT Government is continuing to cut conveyance duty for commercial transactions.
We are removing commercial conveyance duty for all transactions under $1.5 million, by halving rates in 2017-18 and removing it entirely from 1 July 2018.This means 70 per cent of commercial transactions will not be liable for duty from 1 July 2018.
Even at the top threshold the ACT will be competitive with other jurisdictions.
Residential and commercial conveyance duty rates will be split from 2017-18 on.
Table 6 Commercial Conveyance Duty Rates
| Threshold |
2017-18 (%) |
2018-19 (%) |
|---|---|---|
| Up to $200,000 | 0.7 | 0 |
| $200,001 to $300,000 | 1.2 | 0 |
| $300,001 to $500,000 | 1.9 | 0 |
| $500,001 to $750,000 | 2.39 | 0 |
| $750,001 to $1,000,000 | 3.15 | 0 |
| $1,000,001 to $1,499,999 | 3.4 | 0 |
| $1,500,000 and above1 | 5 | 5 |
Note: 1 The $1,500,000 and above rate is a flat rate.
Table 7 Interstate comparison of commercial conveyance duty in 2018-19
| Transaction value | |||
|---|---|---|---|
| Jurisdiction | $0.5 million | $1.5 million | $10 million |
| Duty ($) | Duty ($) | Duty ($) | |
| ACT | 0 | 0 | 500,000 |
| South Australia | 0 | 0 | 0 |
| NSW | 17,990 | 67,990 | 535,490 |
| Victoria | 25,070 | 82,500 | 550,000 |
| Queensland | 15,925 | 66,775 | 555,525 |
| Western Australia | 19,665 | 71,165 | 508,915 |
| Northern Territory | 23,929 | 74,250 | 545,000 |
| Tasmania | 18,248 | 62,685 | 445,185 |
