The South Australian government has announced that it will remove stamp duty as part of its 2023-2024 state budget.
The measures will apply to first home buyers who purchase a new home with a value of up to $650,000 or vacant land with a value of up to $400,000 to build a new home.
Existing measures to help first time buyers such as the First Home Owner Grant (FHOG) will be retained; the property value cap for FHOG will also rise from $575,000 to $650,000.
In a statement, the government noted that the increased FHOG cap better aligns the grant with the higher median house price in Adelaide of $675,000.
The abolition of stamp duty for the first home buyers of new properties means some first time property owners will be some $30,000 better off with respect to stamp duty, and brings the total relief from the South Australian government to up $44,580.
Heightened demand on existing homes is not expected given the grants are for new builds only, noted the government.
“Everyone deserves a home,” said South Australian Premier, Peter Malinauskas.
“We’ve already announced the state’s largest ever land release, significant reforms for renters and the first increase in public housing in a generation.
“These reforms will slash almost $45,000 off the cost of an average new home for a first homebuyer – making it easier for them to enter the market, and cheaper for them to pay their mortgage.
“Importantly, this will also help stimulate new supply in the market, helping ease the housing crisis for everyone, and providing a pipeline of work for an important sector of our economy.”
The measures are estimated to cost $147.3 million over four years and benefit 3,800 first-home buyers per year.
Putting the focus on new builds is also expected to bolster the building industry, which is slowing following the Covid highs.
“This provides an incentive for more supply, creating a pipeline of work for the building industry for years to come,” said South Australian Treasurer Stephen Mullighan.
“It’s about sustaining jobs, growing the economy, and helping as many South Australians as possible to realise the dream of home ownership, now and into the future.”
“Importantly, this will also help stimulate new supply in the market, helping ease the housing crisis for everyone, and providing a pipeline of work for an important sector of our economy,” said Malinauskas.
A $475M housing package
The package will support the delivery of 3,600 new homes over five years, and reduce the cost of housing for another circa 14,000 new homes, including:
- Delivering the first substantial increase to public housing in a generation – building an additional 564 public homes and stopping the sale of 580 others;
- Fast tracking the single largest release of residential land in the state’s history – more than 25,000 new blocks across the north and south;
- 700 additional affordable homes under the National Housing Accord;
- Developing 111-129 Franklin Street to deliver more than 130 social and affordable apartments;
- Delivering targeted reforms to rental laws including banning rent bidding;
- Delivering new housing developments through a new Office for Regional Housing in Renewal SA.
In further relief for first home buyers, the South Australian government has also announced a new 2% deposit home loan through HomeStart for first home buyers building a new home. The measure improves on the government’s election commitment of 3%.
A further $1.7 million over 4 years from 2023-24 has been provided to extend the Aspire homelessness program for a further 12 months to 31 December 2024.
The program provides intensive case management for people who have experienced recurrent homelessness or are at risk of returning to homelessness.
