Dual occupancies allowed in Canberra suburbs under new planning rules will be exempt from stamp duty for more than two years.
The ACT government will waive the transaction tax for the first transfer of unit-titled dwellings on RZ1 blocks for purchases worth up to $800,000 between November 27, 2023 and June 30, 2026.
The exemption will start with the commencement of the ACT's new territory plan, which will allow a second dwelling up to 120 square metres on any block over 800 square metres in an RZ1 area.
Property owners will also be given the choice to accept a standard lease variation charge when building a secondary dwelling on the blocks or to pay 75 per cent of the value uplift.
Most of the blocks where a secondary dwelling will be allowed face a charge of $40,000 if the lease is varied for a second dwelling, but the change will mean property owners can elect to pay a 75 per cent betterment tax instead if they believe that would be cheaper.
Codified charges vary between suburbs, with higher charges in more expensive suburbs. An accredited valuer will be required to determine the alternative 75 per cent tax.
Property owners will be given the choice between the two lease variation charge calculation schemes until June 30, 2026.
Chief Minister Andrew Barr, who announced the changes on Wednesday, said the temporary change to lease variation charges would also allow the government to monitor sales and ensure codified charges were set correctly.
"Both the stamp duty exemption and LVC changes will support the development of more dual-occupancy homes in our suburbs, providing more opportunities for Canberrans to find a home, including existing families looking to downsize in the suburbs they've called home for many years," Mr Barr said in a statement.
However, the rule change to encourage more secondary dwellings in Canberra's suburbs will not deliver more housing near shops and transport links with many blocks unsuited to a second home, an analysis of housing blocks has suggested.
The majority of the 800-square-metre blocks, where owners will be able to construct second dwellings up to 120 square metres and unit title the properties, are at the edge of Canberra's suburban areas, away from key services and transport links.
The analysis showed there were 40,245 blocks covered by the new rules. The ACT government has said it expected the change would cover almost 45,000 blocks in Canberra.
