THE ACT government will remove stamp duty on off-the-plan home purchases of up to $600,000 from April 1.

The new threshold means buyers purchasing an off-the-plan property of $600,000 or less after April 1 will not need to pay any stamp duty, saving them up to $15,720, says the government.

It follows the previous threshold of $500,000 which came into effect in June last year, with the government saying they will look to further extend the concession annually.

The maximum property value increasing to $600,000 is to “ensure the concession continues to support housing purchases by owner occupiers at the entry level of the market,” said Chief Minister Andrew Barr.

“The government is continuing to remove inefficient taxes on properties at the entry level of the housing market to make it easier for Canberrans to purchase their first home or downsize to a property that better suits their needs.

“These tax incentives are also designed to encourage an increased supply of new properties below the duty threshold.”

Master Builders ACT, an organisation representing the building and construction industry, welcomed the announcement, saying it will provide benefit for Canberrans looking to purchase a new unit or apartment.

However, CEO Michael Hopkins said more needed to be done to meet Canberra’s housing demand.

“To provide equity across the new residential market, stamp duty should be cut for all residential purchasers, including vacant land for detached houses,” said Mr Hopkins.

“Supply of vacant residential land for detached housing has been severely constrained in the ACT leading to significant price increases.

“Providing an adequate supply of affordable land for detached housing should be a priority of government and cutting stamp duty would provide immediate relief for purchases.”