Quick answer
ACT businesses borrow from banks, non-bank lenders, fintechs and private lenders, just as elsewhere, but the territory has its own quirks. All land is held on Crown leases rather than freehold, which lenders accept but check closely. From 1 July 2026 payroll tax starts at $1.75m in wages, down from $2m, and commercial property bought for $2.1m or less pays no conveyance duty. Government contractors often fund the gap before invoices are paid.
Key points
- Every title in the ACT is a Crown lease, so lenders check the lease purpose clause, the remaining term and any concessional status
- From 1 July 2026 the payroll tax threshold fell from $2m to $1.75m, pulling more Canberra employers into the tax
- Commercial property with a dutiable value of $2.1m or less pays no conveyance duty from 1 July 2026, which lowers the cash needed to buy premises
- Commonwealth agencies must generally pay suppliers within 20 days, or 5 days for e-invoices, but contractors still carry the cost of mobilising first
- Land registry
- ACT Land Titles Office (Access Canberra)
- Payroll tax threshold
- $1.75m annual wages from 1 July 2026
- Commercial duty
- Nil up to $2.1m dutiable value, from 1 July 2026
- Enquiry range
- $5k to $5m, business purposes only
Nobody in Canberra owns their land outright. Every block in the Australian Capital Territory, from a Fyshwick warehouse to a Barton office suite to a family home in Gungahlin, is held on a Crown lease from the territory. That surprises owners who move here from interstate, and it’s the first thing a lender checks when an ACT business wants to borrow against property.
It’s far from the only local quirk. Canberra’s economy leans heavily on government work, which brings reliable customers but lumpy cash flow for the contractors who serve them. And the ACT changed two important tax settings on 1 July 2026: the payroll tax threshold went down while the commercial duty-free threshold went up. This page explains each of those, and what they mean for a loan.
We’re a national directory without an ACT office. Everything here can be arranged without a branch visit.
How does borrowing against a Crown lease work?
Under the ACT’s leasehold system, the territory owns the land and grants Crown leases to occupiers. Residential leases usually run for 99 years from when the land was first leased, so a buyer takes over whatever term remains. Renewal isn’t automatic, though owners can apply for a further lease during the term. Changing what a lease allows, such as adding floor area or changing use, needs approval and can attract a lease variation charge.
For lending, a Crown lease works much like freehold. Lenders register mortgages and lodge caveats against it at the ACT Land Titles Office in the usual way, and most mainstream and specialist lenders accept ACT security without fuss. The differences show up in the checks:
| What lenders check | Why it matters |
|---|---|
| Purpose clause | A lease limited to a narrow use is worth less, and is harder to sell, than one with broad permitted uses. |
| Remaining term | Most leases have decades left, but a short remaining term on an older commercial lease can reduce the value a lender will rely on. |
| Concessional status | Concessional leases, often granted to community groups, carry restrictions on transfer and can require consent before dealing. Some lenders won’t take them at all. |
| Pending variations | An unpaid lease variation charge or an approved but incomplete change can complicate a sale and therefore the security. |
If you’re thinking about using your home as security, our page on caveat loans in Canberra explains how the fastest property-backed option works here, while the property equity calculator gives a quick sense of what’s available. For the plain-English meaning of the underlying term, see our glossary entry on a lease.
What changed for ACT payroll tax and duty on 1 July 2026?
Two settings moved in opposite directions this financial year.
Payroll tax threshold went down. The ACT Revenue Office lowered the annual threshold from $2m to $1.75m, or about $145,833 a month. Businesses with Australian wages between those two figures, such as a growing consultancy, a hospitality group or a construction firm, are now liable for the first time. The general rate for employers above the threshold is 6.75%, rising in tiers for very large payrolls.
Commercial conveyance duty threshold went up. Commercial property with a dutiable value of $2.1m or less now pays no conveyance duty, up from $2m. That’s a meaningful saving if you’re buying your own premises rather than renting, because the duty cash you’d have needed elsewhere can go towards the deposit.
For lenders, the first change is a new fixed cost to account for when they test whether you can afford repayments. The second lowers the total cash you need to buy a commercial property. Our guide to stamp duty on business property purchases compares how the states and territories handle it, and a commercial property loan is the usual way to fund the purchase itself.
If you’ve just been caught by the lower payroll tax threshold and the first returns are biting, tell us how it’s landing. One minute of typing, and your credit history isn’t checked.
How do lenders view government contractors?
Canberra’s private sector is built around Commonwealth and ACT government demand: IT and digital services, cyber security, defence support, consulting, research, construction and facilities management. Government is about as reliable a debtor as exists, and lenders like that. The challenge is timing.
Under the Commonwealth’s Supplier Pay On-Time or Pay Interest Policy, non-corporate agencies are generally required to pay suppliers inside 20 calendar days, cut to 5 days for e-invoices exchanged through the Peppol network, unless shorter terms were agreed. Those are good terms. But they only start once you’ve delivered and invoiced. Before that, a contractor may need to:
- hire and onboard staff, sometimes waiting weeks for security clearances while paying salaries
- buy equipment, licences or software up front
- fund the first month or more of delivery before a milestone is accepted
That gap is where finance earns its keep. Common structures include:
- Invoice finance once invoices are issued, which advances most of each invoice’s value. With a government debtor, lenders are usually comfortable.
- A business line of credit to cover payroll during mobilisation and the gap between milestones.
- An unsecured or short-term loan for a specific contract start-up, repaid from the first few payments.
Lenders will ask for the signed contract or work order, the payment schedule, your track record on similar work and how dependent you are on one agency. If a contract is coming up for renewal or a machinery-of-government change is looming, say so. Our guide on how to fund a government contract goes into more detail, and the page on winning a big contract covers the cash flow side.
Where does ACT business activity cluster?
| Precinct | Typical businesses | Common borrowing needs |
|---|---|---|
| Civic, Braddon and the city | Professional services, hospitality, retail, tech | Fit-outs, working capital, hiring |
| Barton, Parkes and Russell | Government consultancies, defence support, associations | Contract mobilisation, invoice finance |
| Fyshwick, Hume and Mitchell | Trades, light industry, wholesale, automotive | Vehicles, equipment, warehouse purchases |
| Belconnen, Gungahlin, Woden and Tuggeranong | Allied health, childcare, retail, food | Practice purchases, refurbishments, stock |
| Acton and Bruce | Research, education and innovation spin-offs | Equipment, early-stage working capital |
Building and construction is a big employer too, both in new suburbs and in urban renewal along the light rail corridor, and subcontractors often need equipment finance and help bridging progress payments.
A worked example from Barton
An invented business, used for illustration only.
A Barton digital consultancy with 14 staff wins a two-year Commonwealth contract worth about $3.6m. It needs to hire six more people, four of whom need security clearances that will take six to ten weeks. During that time the consultancy pays salaries but can’t bill for the new staff. Wages will also rise to about $1.9m, above the new $1.75m payroll tax line.
The directors map it out:
- The gap: roughly $280k of extra salaries and onboarding costs before the first milestone invoice, which the agency should pay within 20 days of receipt.
- The structure: a 12-month unsecured line of credit for mobilisation, with invoice finance added once billing is steady so the line can be paid down.
- The tax: payroll tax on about $150k of wages above the threshold, which they now budget monthly.
They use the cash flow gap calculator to find the deepest point of the shortfall, then size the facility to that, rather than to the full contract value.
Should ACT businesses start with their bank?
Usually, yes. The major banks and the territory’s mutual and community banks are often the cheapest source of credit for an established ACT business with good security and clean accounts. If your bank offers a sensible deal, give it serious thought.
Banks do find some Canberra businesses awkward: a young consultancy with one big government client, a business recently caught by payroll tax, an owner whose security is a concessional lease, or anyone who needs funds faster than the bank can approve. That’s where non-bank business loans and private lenders help. If the real problem is a dispute you could resolve rather than fund around, Canberra owners can approach the federal small business ombudsman, ASBFEO, for support. And when a bank has already declined you, our guide for that moment lays out calm, practical next steps.
Get a clear answer for your Canberra business
Whether you’re mobilising a new contract, buying the premises you’ve leased for years or absorbing a new tax bill, the right finance turns on your security, your contracts and your cash cycle.
Bring it to us. Our form is a sixty-second task, and no credit check is run when you send it, so your history stays clean. Rather than being circulated to a long list of funders, your enquiry is read by one of our specialists, who rings you to work through the options. Spell out the amount, the purpose, the contracts involved and any Crown lease you could offer, and we can usually match you correctly first time.
Frequently asked questions
Can I borrow against a leasehold property in Canberra?
Yes. All land in the ACT is held on Crown leases, and lenders treat them much like freehold for security purposes. They will check the lease's purpose clause, how many years remain on the term and whether it's a concessional lease, because those can affect value and the lender's ability to sell if needed.
What is the ACT payroll tax threshold from 1 July 2026?
The annual threshold fell to $1.75 million from 1 July 2026, or about $145,833 a month, down from $2 million. Employers with Australian wages above that line now pay payroll tax, with the rate rising in tiers for very large employers.
Do I pay stamp duty when buying commercial property in the ACT?
From 1 July 2026, commercial property with a dutiable value of $2.1 million or less pays no conveyance duty. Above that, a flat rate applies. That can reduce the cash a business needs to buy its own premises, though lenders will still want a deposit or other security.
How quickly does the Commonwealth pay its suppliers?
Under the Supplier Pay On-Time or Pay Interest Policy, non-corporate Commonwealth entities must generally pay within 20 calendar days, or within 5 days for e-invoices sent through the Peppol network, unless shorter terms were agreed. If a payment is late and the interest owed exceeds $100, the agency must pay it.
Will a lender fund me to start a government contract?
Often, yes. Lenders look at the signed contract, the agency, the payment schedule and your record of delivering similar work. Invoice finance, a line of credit or a short-term loan can cover wages and costs until the first invoices are paid.