Stamp duty axed for new homes

Major stamp duty reform for first home buyers

Stamp duty axed for new homes


By Mina Martin

The South Australia government has announced the complete abolition of stamp duty for first-home buyers purchasing or building new dwellings.

The change eliminates the property price ceiling that previously limited benefits to properties valued at $650,000 or less.

Extended benefits for first-home buyers

Additionally, the First Home Owner Grant has been expanded to apply to all first-time buyers of new homes, without regard to the property's price. This extension aims to make homeownership more accessible to a broader share of first-time buyers.

Financial impact of new policies

Under the new rules, a first-home buyer purchasing a new dwelling at the median house price of approximately $750,000 can anticipate benefits exceeding $50,000. This includes the First Home Owner Grant, which remains set at $15,000.

The exemption applies across various types of new housing, including houses, flats, units, townhouses, apartments, off-the-plan apartments, house and land packages, and vacant land intended for new construction.

Industry reaction to the stamp duty reform

The building industry has responded positively to the news.

Will Frogley (pictured above), CEO of Master Builders SA, highlighted the dual benefit of the changes.

“It’s great news for any South Australians dreaming of owning their own home,” Frogley said. “It’s also a great day for builders, tradies, suppliers, apprentices, and all of the more than 80,000 South Australians directly employed in our industry.”

Economic costs and benefits

The policy overhaul will cost the government an estimated $30 million over four years. This investment aims to stimulate the construction industry and increase homeownership among first-time buyers, reflecting a significant commitment to both economic growth and social welfare.

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