ACT has second lowest stamp duty burden in country, figures show

The ACT's overall stamp duty burden on a median-priced home is one of the lowest in the country, according to figures from the Housing Industry Association (HIA).

Stamp duty, the tax paid on property transactions, accounts for 3.2 per cent of the total cost of a median-priced ACT home, or about $16,600.

It is the second-lowest burden as a percentage, the same as Tasmania and behind only Queensland at 1.4 per cent

Victoria had the highest stamp duty burden, at 5 per cent, or about $24,000 for a median-priced dwelling, while stamp duty in New South Wales is 3.6 per cent or $19,228.

In 2012, the ACT Government announced the first five-year phase, of a long-term plan to abolish stamp duty on house sales.

But Shane Garret from the HIA said although the ACT's average stamp duty was lower than in other states, it was still a big burden that had flow-on effects.

"It's adding to the affordability burden, particularly for younger buyers, and it's resulting in activity in the market and the amount of new building being lower than what it would be under lower levels of stamp duty," he said.

The HIA report compared the effects of stamp duty on the value of a homebuyer's superannuation fund at retirement age, based on a July 2014 dwelling purchase.

For the ACT, it showed retirees would have been $220,900 better off had stamp duty been waived.

Results were based on purchases taking place 40 years before retirement by a person in the $37,000 to $80,000 income bracket.

The report also showed conveyance stamp duty made up 18.7 per cent of the Territory's total tax revenue in the 2012-2013 financial year.

ACT Housing Minister Andrew Barr said the ACT was committed to cutting stamp duty as part of its tax reform agenda, and stamp duty rates were reduced as recently as June 4 of this year.

"The Government has also introduced a flat rate of 5.25 per cent for all properties valued above $1.455 million," he said.

"This initiative will accelerate the abolition of conveyance duty on high-value properties."

Mr Barr said further stamp duty concessions were also available for people over the age of 60.