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
Residential Conveyance duties continue to reduce every year
The ACT Government will continue to reduce residential conveyance duty rates in the 2016-17 Budget, as previously announced, and over the next five year period of tax reform. Table 8 below shows the residential conveyance duty rate scale for 2016-17 and the next five years.
Table 8 Residential Conveyance Duty Rates
| Threshold |
2015-16 (%) |
2016-17 (%) |
2017-18 (%) |
2018-19 (%) |
2019-20 (%) |
2020-21 (%) |
2021-22 (%) |
|---|---|---|---|---|---|---|---|
| Up to $200,000 | 1.8 | 1.48 | 1.4 | 1.3 | 1.2 | 1.1 | 1.0 |
| $200,001 to $300,000 | 3.0 | 2.5 | 2.4 | 2.3 | 2.2 | 2.1 | 2.0 |
| $300,001 to $500,000 | 4.0 | 4.0 | 3.8 | 3.6 | 3.4 | 3.2 | 3.0 |
| $500,001 to $750,000 | 5.0 | 5.0 | 4.78 | 4.56 | 4.32 | 4.1 | 3.9 |
| $750,001 to $1,000,000 | 6.5 | 6.5 | 6.3 | 6.1 | 5.9 | 5.7 | 5.5 |
| $1,000,001 to $1,454,999 | 7.0 | 7.0 | 6.8 | 6.6 | 6.4 | 6.2 | 6.0 |
| $1,455,000 and above1 | 5.17 | 5.09 | 4.91 | 4.73 | 4.54 | 4.36 | 4.18 |
Note: 1 The $1,455,000 and above rate is a flat rate.
Table 9 Residential conveyance duty in 2011-12 and 2021-22
| 2011-12 | 2021-22 (Stage 2) | ||
| Property value | Duty ($) | Duty ($) | Reduction (%) |
| $300,000 | 9,500 | 4,000 | -58 |
| $400,000 | 15,000 | 7,000 | -53 |
| $500,000 | 20,500 | 10,000 | -51 |
| $600,000 | 26,250 | 13,900 | -47 |
| $700,000 | 32,000 | 17,800 | -44 |
| $800,000 | 37,750 | 22,500 | -40 |
| $900,000 | 43,500 | 28,000 | -36 |
| $1 million | 49,250 | 33,500 | -32 |
| $1.1 million | 56,000 | 39,500 | -29 |
| $1.2 million | 62,750 | 45,500 | -27 |
Table 9 shows that the conveyance duty payable on transactions on property below $500,000 will decrease by 51 per cent or more by the end of Stage Two of tax reform.
Properties below $500,000 account for about 60 per cent of residential transactions.
