In a significant move to assist first-home buyers (FHBs), the South Australian government has announced the elimination of stamp duty for those purchasing or building new homes. This policy change is a key component of the state’s 2024–25 budget, reflecting a strategic effort to boost the housing supply across South Australia.
Policy Changes to Boost Housing Supply
The state government has removed the property value thresholds for both the stamp duty exemption and the First Home Owner Grant. This means that FHBs can now benefit from these incentives regardless of the property’s value. Previously, these benefits were only available for new homes priced at $650,000 or less, a policy introduced in the 2023–24 budget.
By removing these thresholds, the government aims to alleviate financial burdens on FHBs. According to state officials, the amendments could save first-home buyers more than $50,000, including the First Home Owner Grant, on properties worth $750,000.
Wide-Ranging Benefits for FHBs
The stamp duty exemption applies to various types of newly built homes, including houses, units, apartments, townhouses, and flats. It also covers off-the-plan apartments, house and land packages, and vacant land, offering extensive options for prospective homeowners.
Government Leaders on Housing Policy
Premier Peter Malinauskas emphasised the broader impact of this initiative, stating, “We are amid a national housing crisis borne of successive governments failing to do enough to build new homes. Every new home built in our state benefits the rest of the housing market. Every first home buyer that can move into a new home means one less buyer or renter competing for existing stock.”
Treasurer Stephen Mullighan echoed this sentiment, highlighting the government’s commitment to supporting young Australians in achieving homeownership. “We are acutely aware of the challenges young people face when looking to enter the property market. That is why we have taken the step to abolish the property value cap on the stamp duty exemption for first home buyers who buy or build a new dwelling,” Mullighan said.
Minister for Housing and Urban Development Nick Champion stressed the importance of increasing housing supply at all levels of the market. He noted that the abolition of stamp duty for FHBs is a crucial step in helping more young people build their first homes. Champion also mentioned that more details on measures to address the housing crisis would be provided at the Premier’s Housing Roadmap event later this month.
Industry and Community Reactions
Will Frogley, CEO of Master Builders SA, lauded the policy change, calling it a milestone for prospective homeowners and the construction industry. “This is a great day for any South Australian who dreams of owning their own home. It’s also a great day for builders, tradies, suppliers, apprentices, and all of the more than 80,000 South Australians directly employed in our industry,” Frogley said.
This bold policy shift by the South Australian government is poised to have far-reaching implications for the housing market, providing significant financial relief to first-home buyers and invigorating the state’s construction sector.
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