Yahoo Finance Major boost for first homebuyers revealed
South Australia will completely abolish stamp duty for first homebuyers purchasing or building a new home in a bid to help more Aussies into home ownership.
SA Premier Peter Malinauskas made the announcement ahead of the 2024-25 state budget being handed down on Thursday, stating the country was experiencing a housing crisis “borne of successive governments failing to do enough to build new homes”.
As part of the budget relief, property value thresholds for both the stamp duty exemption and the first home owner grant will be abolished at a cost of $30m over four years.
A first home buyer in SA who purchases a new dwelling in line with the median $750,000 house price will receive a benefit of over $50,000.
This includes the first home owner grant of $15,000.
The stamp duty exemption will be available to all first home buyers who buy a new home - including a house, flat, unit, townhouse or apartment, an off-the-plan apartment, a house and land package or vacant land to build a new home.
Mr Malinauskas said the measure was building on a prior budget measure where the State Labor Government abolished stamp duty for some first homebuyers who were building new homes.
“Now we are making that tax relief available to all of them,” he announced on Tuesday.
“Every new home built in our state benefits the rest of the housing market.
“Every first homebuyer that 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 median value of a home in a capital city shooting to $832,000.
We’re officially abolishing stamp duty for all first homebuyers who buy or build a new home, and extend the First Home Owner Grant to all eligible first homebuyers from 6 June 2024. pic.twitter.com/mqoN3D12P3
— Peter Malinauskas (@PMalinauskasMP) June 4, 2024
Figures from PropTrack’s Home Price Index report in April revealed dwelling prices in capitals had increased by 0.4 per cent since February.
Costs were rising the highest in smaller capital cities the quickest, with year-on-year growth in Perth, Adelaide, and Brisbane soaring by of 18.62 per cent, 13.47 per cent and 12.90 per cent respectively.
The SA Government’s stamp duty abolition will kick in from Thursday, June 6.
Master Builders SA chief Will Frogley said the vital policy change would “incentivise” South Australians to build their own home, which would fuel job creation and a stronger economy.
