Exciting changes are here for first home buyers in South Australia! The government has removed the property value caps on the $15,000 First Home Owner Grant (FHOG) and the stamp duty exemption for new homes. This means that no matter the value of your new home, you can receive the grant and avoid paying stamp duty, potentially saving tens of thousands of dollars.
Boosting Home Building
These measures are designed to encourage the construction of new homes and support aspiring homeowners. With Adelaide’s home prices rising over 14% since last year, these incentives are timely. The new policies apply to those purchasing a new home, an off-the-plan apartment, a house and land package, or vacant land for building.
Historic Changes in 2024-25 Budget
The upcoming 2024-25 state budget marks South Australia as the first state to completely remove stamp duty for first home buyers on new constructions. This is an expansion from last year’s budget, which only removed stamp duty for homes valued up to $650,000.
Market Impact
SA Premier Peter Malinauskas emphasised the broader benefits, stating, “Every new home built in the state benefits the rest of the housing market.” By focusing on new builds, the government aims to reduce competition for existing homes and ease the national housing crisis.
Expert Opinions
Paul Ryan, a senior economist at PropTrack, highlighted the role of stamp duty in limiting homeownership access, noting the positive impact of targeting incentives at new constructions. Will Frogley, CEO of Master Builders SA, celebrated the changes, saying, “This vital policy change will incentivise South Australians to build their own home, fuel job creation, and keep our economy strong.”
A Broader Trend
This reform, costing $30 million over four years, aligns with broader trends across Australia. Other states like Western Australia and Tasmania are also making it easier for first home buyers by extending stamp duty exemptions.
For first home buyers in South Australia, these changes mean a smoother and more affordable path to owning a new home. Talk to us about applying for finance at Meta Financial today!
