No Stamp Duty for Eligible First Home Buyers

Published On: 28 September 2023
Navigating Property Transactions in South Australia

Stamp Duty Scrapped for First Home Buyers

Buying your first home is a monumental milestone, one that often comes with many financial undertakings.

The South Australian government has introduced a new stamp duty relief scheme for first home buyers that took effect from 15 June 2023. The scheme provides full stamp duty relief for eligible first home buyers who purchase a new home valued up to $650,000 or vacant land valued up to $400,000.

That means an eligible first home buyer who purchases a new home valued at $650,000 could receive relief of up to $29,580.

Understanding Stamp Duty

Stamp duty is a state government tax imposed on certain transactions, including the purchase of property. It is calculated based on the value of the property.

Stamp Duty Relief: An Opportunity for First Home Buyers

Recognising the challenges faced by first home buyers, the South Australian government is offering stamp duty relief. This aims to reduce the financial burden on first-time buyers and encourage them to take the leap into homeownership.

Eligibility Criteria

To benefit from stamp duty relief, you must meet certain criteria:

  1. Ownership: You must be purchasing the property as an individual, not as a company or trust. And you must be an Australian citizen or permanent resident.
  2. Residency: At least one applicant must reside in the home as their principal place of residence for a continuous period of at least 6 months commencing within 12 months of the date of settlement for home purchase contracts, or the date construction is completed for a contract to build (vacant land).
  3. Age: All buyers involved in the purchase must be at least 18 years old.
  4. Value: An eligible new home must have a dutiable value of $650,000 or less and Vacant land a dutiable value of $400,000 or less.
  5. New homes between $650,001 and $700,000 and vacant land between $400,001 and $450,000 will receive partial stamp duty relief but need to pay the remainder of stamp duty.
  6. Previous Ownership: None of the buyers or their spouses/partners should have owned residential property before or received stamp duty relief previously.
Benefits of Stamp Duty Relief

The primary benefit is the financial relief it gives first home buyers.

By reducing or eliminating stamp duty costs, the government is trying to provide a financial boost for individuals or families looking to make their first property purchase. This can make a significant difference in the overall affordability of a property.

Application Process

To apply for stamp duty relief, you will need to submit documentation to Revenue SA.

The documentation typically includes the First Home Buyer Application and the relevant property purchase details and can be submitted by your Conveyancer prior to settlement.

Buying property can be daunting, especially for first home buyers, so the stamp duty relief scheme can be a big help.

If you have any questions, please do not hesitate to contact your conveyancer.