ACT GOVERNMENT’S STAMP DUTY SHOCK: ELIGIBILITY REVERSALS YEARS AFTER APPROVAL

Ed Cocks MLA

Shadow Treasurer

Shadow Minister for Government Services and Customer Experience

Media Release

18 February 2025

Thousands of honest Canberrans who thought they had secured stamp duty concessions when buying their homes could be in for a nasty financial shock – many years after approval.

During Annual Reports Hearings yesterday, ACT government officials revealed that stamp duty concessions and exemptions can be reassessed months, or even years, after being granted. 

Department officials said that if the ACT government later decides a homeowner was ineligible, it will demand repayment of the full stamp duty amount, plus interest and thousands of dollars in penalties.

Shadow Treasurer Ed Cocks has strongly criticised the revelation, calling it “an attack on honest Canberrans.”

“Imagine getting government approval for a stamp duty concession, buying your first home, and then—four years later—receiving a massive bill in the mail, followed by government debt collectors. That’s the shocking reality for some Canberrans right now,” Mr. Cocks said.

“This is unfair, unreasonable, and completely out of touch. How many first-home buyers and pensioners could be blindsided by these retrospective assessments when they genuinely believed they were eligible?”

During the hearings, an ACT government official admitted that the government undertakes no due diligence checks before approving a stamp duty exemption, meaning applicants are initially approved without verification.

Worse still, officials confirmed there is no time limit on when the Government can overturn its decision.

Adding to the distress, homeowners who appeal these decisions still face debt collection while waiting for an outcome, creating stress, uncertainty, and financial hardship.

“This process is deeply concerning and may not even align with the public service code of conduct,” Mr. Cocks continued. 

“Even if it’s legal, it’s certainly morally questionable.  No Canberran should have to live in fear of a surprise bill years after they are told they are eligible.”

Mr. Cocks has called on the ACT Government to immediately halt retrospective eligibility assessments and review the scheme to ensure no Canberran is unfairly targeted.