South Australian government axes stamp duty for all new homes and removes caps for First Home Owner Grant

South Australian government axes stamp duty for all new homes and removes caps for First Home Owner Grant
  • PublishedJune 7, 2024

It’s estimated a first home owner purchasing a home worth $750,000 will save at least $50,000.

It’s about to become a little easier for some South Australians to buy a home.

Ahead of the state budget being handed down on Thursday, the government says it has abolished eligibility caps for both stamp duty exemptions and the First Home Owners Grant.

Stamp duty will be removed for the purchase of all new homes for first homeowners, including those who buy land, a unit or apartment, on Wednesday, the SA government says.

Previously, stamp duty exemptions applied only to first homeowners who bought new homes under $650,000.

Premier Peter Malinauskas says it’s hoped abolishing the tax will encourage more people to build in South Australia, to increase the shortfall in housing.

“Every new home built in our state benefits the rest of the housing market,” Malinauskas said.

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

The government says it will also remove eligibility caps for the First Home Owners Grant worth $15,000.

First homeowners had been eligible for the grant if they purchased a new home worth $650,000 or less after June 15, 2023, or a home worth $575,000 or less before June 2023.

The SA government now says a first home buyer purchasing a property worth about $750,000 would save $50,000 when the changes come into effect after the state budget is handed down on Thursday.

It’s estimated both commitments will cost $30 million over four years.

Master Builders Association of South Australia Chief Executive Will Frogley said making homeownership cheaper should increase housing stock and, in turn, bring down house prices.

He said it would also help the building industry secure further work as the post pandemic housing boom slows down.

The SA government has also announced that two new housing projects in the city’s west and south have received funding under the 2024-25 budget.

About 1300 new homes are expected to be built in Seaton and a total of 600 in Port Noarlunga and Noarlunga Downs.

The state government said about 15 per cent of the homes in Seaton would be dedicated to affordable housing programs, while about 30 per cent would be for social housing.

SOURCE: 7NEWS

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