Support For First-Home Buyers In South Australia

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Otto Dargan

South Australia announced the 2023/24 state budget on 15 June 2023. As part of the budget, first-home buyers in South Australia can get the following:
  • Relief from stamp duty
  • An increase in the property price cap for eligibility for homeowner grants
  • A loan for building a new home with a deposit as low as 2%.
Let’s go through the details and see how these changes affect a first-home buyer in South Australia.

No Stamp Duty For First Home Buyers in South Australia

For contracts entered into on or after 15 June 2023, first-home buyers in South Australia will not have to pay stamp duty under the following conditions:
  • The value of their new home is below $650,000
  • The value of the land is below $400,000
There are stamp duty concessions available for first-home buyers in South Australia if:
  • The value of their new home is below $700,000
  • The value of the vacant land is below $450,000

How Much Do First-Home Buyers in South Australia Save With Stamp Duty Relief?

Property Value Stamp Duty Applied Stamp Duty Relief Amount Saved
$300,000 $11,330 $11,330 $11,330
$350,000 $13,830 $13,830 $13,830
$400,000 $16,330 $16,330 $16,330
$450,000 $18,830 $18,830 $18,830
$500,000 $21,330 $21,330 $21,330
$550,000 $24,080 $24,080 $24,080
$600,000 $26,830 $26,830 $26,830
$650,000 $29,580 $29,580 $29,580
$660,000 $30,130 $24,104 $6,026
$670,000 $30,680 $18,408 $12,272
$680,000 $31,230 $12,492 $18,738
$690,000 $31,780 $6,356 $25,424
$700,000 $32,330 Nil $32,330

Increase In Property Price Cap For First-Home Owners Grant

First-home buyers in South Australia can get a $15,000 first-home owners grant (FHOG) for property valued up to $650,000. The previous cap was $575,000.

Who Can Get A Stamp Duty Exemption And FHOG in South Australia?

The stamp duty relief and the increased First Home Owner Grant are effective for contracts entered into on or after 15 June 2023. Here are the requirements:
  • You’re purchasing a new home.
  • You’re 18 years or older.
  • The market value of the property is $650,000 or less.
  • At least one applicant is an Australian citizen or permanent resident.
  • You are a New Zealand citizen who permanently resides in Australia and holds a Special Category Visa.
  • You and your spouse/partner must not have held a relevant interest in Australian residential property prior to 1 July 2000.
  • You or your spouse/partner have not occupied an Australian residential property in which you had a relevant interest on or after 1 July 2000 or 6 months or longer.
  • You or your spouse/partner have not received a grant in any state or territory in Australia.
  • All recipients must reside in the home as a principal place of residence continuously for six months.

Low-Deposit Home Loans For Building A New Home

The South Australian Government has also introduced an initiative for first-home buyers looking to construct their new home – a 2% deposit home loan scheme. Administered by HomeStart, the non-bank lender of the state government, the program enables aspiring homeowners to secure a loan to build a new home with at least a 2% deposit without paying LMI. The scheme could help countless first-home buyers reduce the time it takes them to become homeowners by eliminating the need to save a 20% deposit. Homebuyers usually must save a deposit worth 20% of the property value to avoid paying Lenders Mortgage Insurance (LMI).

Examples: Maximising Benefits for First-Home Buyers

If a first-home buyer is eligible for the stamp duty exemption, increased grant and 2% low-deposit scheme, they could save more than $100,000.
Purchase price Standard 20% deposit 2% Deposit for Homestart loan Stamp duty FHOG Total support available*
$450,000 $90,000 $9,000 $18,830 $15,000 $114,830
$650,000 $130,000 $13,000 $29,580 $15,000 $161,580
*The total support is calculated by adding the stamp duty, FHOG and the difference between the 20% deposit and the 2% deposit.

Buy Your Dream Home Sooner

Stay informed and take advantage of the comprehensive support available to first-home buyers in South Australia. You can plan your path to homeownership with these valuable initiatives and secure your dream home sooner – and Home Loan Experts can help! Call us on 1300 889 743 or complete our free assessment form today.

About the Author

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Otto Dargan

Otto Dargan is the Founder of Home Loan Experts. He is involved in strategic and operational matters. He utilises his time in seeking... [Read More]

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