The 2023-24 State Budget introduces changes to stamp duty and the First Home Owner Grant (FHOG) in South Australia to support first home buyers and stimulate the housing market. The stamp duty exemption is specifically targeted at new home purchases and vacant land for building new homes.
Stamp Duty Relief
Firstly, stamp duty will be abolished for first home buyers who purchase a new home valued up to $650,000. This exemption gradually phases out for properties valued up to $700,000. For vacant land purchases, stamp duty relief will be available for land valued up to $400,000, with a gradual phase-out up to $450,000.
All these calculations already updated with our stamp duty calculator
First Home Owner Grant
Additionally, the property value cap for the FHOG is increased from $575,000 to $650,000. Eligible first home buyers who build or buy a new home valued up to $650,000 will now receive up to almost $30,000 in stamp duty relief and they will also be eligible for a FHOG payment of $15,000, bringing the total relief from the state government to $44,580.
These measures are estimated to benefit around 3,800 first home buyers annually and are expected to provide support to the building industry while alleviating pressure on the rental market. By targeting the stamp duty exemption to new builds only, the government aims to stimulate the supply of new housing without increasing demand for existing homes.
These changes to stamp duty and the FHOG come into effect for contracts signed on or after 15 June, 2023