Amendments to stamp duty and land tax concessions were introduced in the most recent state budget and apply in the current financial year.
Summary of changes
- Introduction of stamp duty relief 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.
- Increase in the property value cap for the first home owner grant in relation to eligible transactions entered into on or after 15 June 2023 from $575,000 to $650,000.
- Introduction of a land tax reduction for eligible build-to-rent projects where construction commences on or after 1 July 2023.
Stamp duty relief for first home buyers
Stamp duty relief is now available to eligible first home buyers who entered into a contract to purchase a new home or vacant land to build a new home on or after 15 June 2023.
This relief is not available on the purchase of an established home, including a planned knock-down and rebuild.
Full stamp duty relief applies on the purchase of an eligible new home valued up to $650,000, with reduced relief for properties valued up to $700,000.
Vacant land on which a new home will be built
For the purchase of vacant land on which a new home will be built, full stamp duty relief applies for land valued at up to $400,000, with reduced relief for land valued up to $450,000.
The eligibility criteria are based the first home owner grant. This is set out in detail in the commentary in the By Lawyers Purchase of Real Property guide.
First Home Owner Grant threshold increase
The property value cap was increased for the first home owner grant in relation to eligible transactions entered into on or after 15 June 2023 from $575,000 to $650,000.
Land tax reduction for build-to-rent projects
To promote new housing opportunities, a land tax reduction is available for eligible build-to-rent projects when construction commences on or after 1 July 2023. This is applied as a 50% reduction in the land value of relevant parcels of land being used for an eligible build-to-rent project.
The land tax reduction is available from the 2023-24 financial year up to, and including, the 2039-40 financial year.
By Lawyers publication updates
The By Lawyers Conveyancing (SA) publication, which includes the Sale of Real Property guide and the Purchase of Real Property guide, has been updated to reflect these changes, including the commentaries, to-do lists, retainer instructions, and initial letters.