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{{propApi.successMessage}} {{region}} Change locationACT Budget doubles down on missing middle
ACT Budget doubles down on missing middle
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The 2026-27 ACT Budget includes comprehensive support for the Missing Middle Reforms which aim to deliver mid-density housing in existing suburbs, but there were missed opportunities to support supply of other forms of housing.
Wednesday, 10th June 2026
“Higher interest rates and rising construction costs have compounded the ACT Government’s challenge of delivering 30,000 homes by 2030,” said HIA Executive Director ACT & Southern NSW, Geordan Murray.
“The decision to halve the Lease Variation Charge (LVC) for Missing Middle housing projects was a particularly significant measure. HIA has consistently argued that the LVC acts as a tax on new housing supply which undermines the feasibility of housing projects.
“We recognise that the Government has commenced a broader review of the LVC and welcome that process. In the meantime, halving the charge for Missing Middle developments is a significant step that will improve the feasibility of infill townhouse, terrace and low-rise multi-unit housing projects.
“Funding a project to develop a pattern book for Missing Middle housing and providing a streamlined approval pathway for compliant designs should further support supply in this part of the market in time.
“Reducing planning complexity and approval timeframes is critical if we want to see greater uptake of medium-density housing in established suburbs.
“The Government’s housing supply strategy is at risk of becoming too dependent of the uptake of the Missing Middle reforms. Achieving the target of delivering 30,000 homes by 2030 will require the government to broaden its focus to improve supply across all housing typologies.
HIA also welcomed the abolition of stamp duty for all first home buyers and the removal of stamp duty on unit-titled properties.
“Reducing upfront transaction costs will help more Canberrans enter the housing market and support the delivery of a broader range of housing options,” added Mr Murray.
“On balance, the Budget contained a package of practical reforms that should be welcomed by both industry and prospective home buyers, but there is more to be done.
“The challenge now is to ensure these initiatives translate into homes on the ground. That will require continued attention to project feasibility, planning efficiency and housing supply across all parts of the market.
“These reforms are an important step forward, but achieving meaningful improvements in housing affordability will ultimately require more homes than are currently contemplated under the Government’s 30,000 homes by 2030 target,” concluded Mr Murray.
“The decision to halve the Lease Variation Charge (LVC) for Missing Middle housing projects was a particularly significant measure. HIA has consistently argued that the LVC acts as a tax on new housing supply which undermines the feasibility of housing projects.
“We recognise that the Government has commenced a broader review of the LVC and welcome that process. In the meantime, halving the charge for Missing Middle developments is a significant step that will improve the feasibility of infill townhouse, terrace and low-rise multi-unit housing projects.
“Funding a project to develop a pattern book for Missing Middle housing and providing a streamlined approval pathway for compliant designs should further support supply in this part of the market in time.
“Reducing planning complexity and approval timeframes is critical if we want to see greater uptake of medium-density housing in established suburbs.
“The Government’s housing supply strategy is at risk of becoming too dependent of the uptake of the Missing Middle reforms. Achieving the target of delivering 30,000 homes by 2030 will require the government to broaden its focus to improve supply across all housing typologies.
HIA also welcomed the abolition of stamp duty for all first home buyers and the removal of stamp duty on unit-titled properties.
“Reducing upfront transaction costs will help more Canberrans enter the housing market and support the delivery of a broader range of housing options,” added Mr Murray.
“On balance, the Budget contained a package of practical reforms that should be welcomed by both industry and prospective home buyers, but there is more to be done.
“The challenge now is to ensure these initiatives translate into homes on the ground. That will require continued attention to project feasibility, planning efficiency and housing supply across all parts of the market.
“These reforms are an important step forward, but achieving meaningful improvements in housing affordability will ultimately require more homes than are currently contemplated under the Government’s 30,000 homes by 2030 target,” concluded Mr Murray.
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