South Australia abolishes stamp duty for first homebuyers purchasing or building new home

South Australia will completely abolish stamp duty for first home buyers buying or building a new home to help more Australians into home ownership.

SA Premier Peter Malinauskas made the announcement ahead of Thursday’s announcement of the 2024-25 national budget, saying the country was facing a housing crisis caused by successive governments failing to do enough to build new homes.

As part of the budget relief, the property value thresholds for both the stamp duty exemption and the first home owner subsidy will be removed at a cost of $30 million over four years.

A first home buyer in SA who purchases a new home within the median house price of $750,000 will receive a benefit of more than $50,000.

This includes a $15,000 First Home Owner Grant.

Stamp duty relief will be available to all first home buyers who buy a new home – including a house, flat, unit, townhouse or flat, off-plan flat, house and land package or vacant land for new home construction.

Mr Malinauskas said the measure builds on a previous budget measure where the Labor government scrapped stamp duty for some first home buyers who were building new homes.

“Now we’re giving them that tax break for everybody,” he announced Tuesday.

“Every new home built in our country benefits the rest of the housing market.

“Every first-time home buyer who can move into a new home means one less buyer or renter competing for existing stock.”

Earlier this year, house prices across the country hit new highs, with the capital’s median home value reaching $832,000.

Data from PropTrack’s April house price index report revealed that capital city house prices rose by 0.4 per cent since February.

Costs rose fastest in smaller capital cities, with year-on-year growth in Perth, Adelaide and Brisbane jumping by 18.62 per cent, 13.47 per cent and 12.90 per cent respectively.

The abolition of stamp duty by the SA Government will come into force on Thursday 6 June.

Master Builders SA chief executive Will Frogley said the key policy change would “encourage” South Australians to build their own home, boosting job creation and a stronger economy.

Read related topics:Adelaide

Leave a Comment