DUAL occupancies on suburban residential blocks would be exempt from stamp duty for a limited period, the ACT government announced on Wednesday.

The government said the stamp duty exemption would apply to the first transfer of unit-titled dwellings on suburban residential blocks (RZ1) for purchases valued up to $800,000 from  November 27 until June 30 2026.

The introduction of the exemption will coincide with the start of the new Territory Plan, which will allow dual occupancy developments on large blocks. Any block more than 800 square metres in an RZ1 zone will be able to accommodate a modest second dwelling, up to 120 square metres in size, and be able to unit title that second dwelling (enabling it to be individually sold).

The government said it was also introducing changes to the lease variation charge (LVC) – a windfall gains tax – to support the development of more dual occupancy homes in Canberra.

Between the start of the new Territory Plan and June 30 2026, the government will give lessees the choice on how the LVC is calculated for maximum number of dwelling lease clauses on RZ1 blocks, between the codified values or 75 per cent of the value uplift as measured by an accredited valuer.

This will put the choice in the hands of the lessees as to whether they prefer the certainty of the codified values or the flexibility to seek a bespoke valuation to test the value uplift.

The temporary LVC changes will also enable the government to monitor developments and sales to ensure codified values are then set at the right level.