By Kimberley Garcia

Revenue SA’s Stamp Duty Relief package for eligible first home buyers on 15 June 2023 State Budget is the most recent development for those looking to break into the property market.

This Stamp Duty Relief package is only available to Purchasers who have entered their contracts from 15 June 2023.

On Tuesday, 4 June 2024, the Premier announced an exciting update to the Stamp Duty Exemption Scheme for First Home Buyers, abolishing the property value cap on the Stamp Duty Exemption and First Home Owners Grant. This change only applies to contracts entered into from 6 June 2024.

For Contracts entered between 15 June 2023 and 5 June 2024, you will be eligible for the full stamp duty exemption if the purchase price does not exceed $650,000.00 for a new home or $400,000.00 for vacant land.

Partial relief may also be applied for Contracts where the purchase price does not exceed $700,000.00 or $450,000.00 for vacant land.

Who is an eligible First Home Buyer?

To be eligible, the purchased property must comply with the following classifications;

• A new home;
• Off-the-plan apartment;
• House and Land Package (land contract together with build contract); or
• Vacant land to build your new home on.

The Applicants must be Australian citizens or permanent residents, at least 18 years of age, and natural persons.

Companies and Trusts are not eligible for stamp duty relief.

It is important to note that eligibility is determined as at the date the Applicants enter the contract.

How does this affect Settlement?

If a Purchaser believes they meet the above criteria, they must submit the Application for Stamp Duty Relief for Eligible First Home Buyers.

Your conveyancer or solicitor will submit this application to Revenue SA on your behalf as part of the Transfer of Land stamping process.

Revenue SA requires Applications to be manually assessed as an “opinion assessment.”

It is important to note that opinion assessments typically take 1-3 weeks to complete when signing your contract and determining the settlement date. If the Purchaser is dependent on Stamp Duty Relief, we recommend that sufficient time is included in the settlement period to attend to your application to ensure that the Stamp Duty Relief is approved prior to the settlement date to avoid default in settlement.

How does the Stamp Duty Relief differ from the First Home Owner Grant?

Many purchasers may be eligible for both Stamp Duty Relief and the First Home Owners Grant (FHOG), which are measures designed to assist first-time homebuyers. However, it is essential to understand that they operate in different ways and offer different types of financial support.

The First Home Owners Grant is a financial grant provided by the South Australian government to eligible first-time homebuyers, while Stamp duty relief is a reduction or waiver of the stamp duty tax that is typically payable when purchasing property.

A few key differences to note:

• Type of Benefit: The FHOG provides a $15,000.00 grant to first-time homebuyers, while stamp duty relief offers a reduction or waiver of the stamp duty tax.

• Application of Benefit: The FHOG is a lump sum payment that can help with various costs associated with buying or building a new home. Stamp duty relief explicitly reduces the stamp duty cost for property transactions.

The FHOG and stamp duty relief aim to make homeownership more accessible and affordable for first-time buyers. Still, they do so in complementary ways—one by providing direct financial assistance and the other by reducing transaction costs.