No stamp duty for certain first home buyers in South Australia

June 27, 2023

The 2023-24 SA Budget was delivered on 15 June 2023 and, in terms of tax-related measures, focusses on first home buyers – with the keynote item being the targeted abolition of stamp duty. There was also an affiliated land tax measure announced. The measures are contained in the Statutes Amendment (Budget Measures) Bill 2023.

  • Stamp duty will be abolished for eligible first home buyers who enter into a contract to purchase a new home or vacant land to build a new home on or after 15 June 2023. No stamp duty will be payable on the purchase of an eligible new home valued up to $650,000, with relief progressively phasing out for properties valued up to $700,000. For the purchase of vacant land on which a new home will be built, no stamp duty will be payable for vacant land valued up to $400 000 with relief phasing out for land valued up to $450,000.
  • The 2023-24 State Budget introduces a land tax reduction for eligible build-to-rent properties on South Australian land, where construction commences on or after 1 July 2023. This will apply as a 50% reduction in the land value of relevant parcels of land, where the land is being used as an eligible build-to-rent project. The land tax reduction will be available from the 2023-24 financial year up to, and including, the 2039-40 financial year.

In addition, the existing First Home Owner Grant property value cap will be increased from $575,000 to $650,000 for eligible contracts entered into on or after 15 June 2023. The Grant provides eligible purchasers with $15,000 to assist with the purchase cost of a new home. The Government will also implement its election promise to introduce a low deposit home loan scheme for first home buyers building a new home. It will allow first home buyers to borrow to construct their first home with a 2% deposit (reduced from the previously announced 3%).