Purchasing your first home is an exciting milestone, but it can also come with significant financial implications. Among these considerations is the payment of stamp duty, the tax the State imposes on the transfer of land. However, for eligible first home buyers in South Australia, there is now some relief available in the form of stamp duty exemptions or reductions. In this blog, we explore the key details and eligibility criteria for stamp duty relief just announced in South Australia, providing a comprehensive overview for those looking to enter the property market.
Stamp duty is a tax payable at the time of settlement, when the purchased property is transferred into your name. The amount of stamp duty is typically calculated based on the value of the property. For first home buyers, the South Australian government has introduced stamp duty relief measures to help ease the financial burden associated with purchasing a home. It is very important to note that stamp duty relief is for eligible first home buyers and, like the first homeowner grant, is not available on the purchase of an established home, including where the plan is to knock down and rebuild a new home.
To be eligible for stamp duty relief, certain criteria must be met. Firstly, you must be an Australian citizen, a permanent resident, or a New Zealand citizen residing in Australia under a Special Category Visa. Additionally, you need to be at least 18 years old at the time of applying for the relief. It’s important to note that only one applicant needs to meet the citizenship or residency requirement.
To ensure that stamp duty relief is targeted towards owner-occupiers, at least one applicant (you or your spouse/domestic partner) must reside in the purchased property as their principal place of residence for a continuous period of at least six months. This residency should commence within 12 months from the date of settlement for purchase contracts or completion of construction for owner builders or building contracts.
The extent of stamp duty relief you receive depends on the value of the property you are purchasing. If the value of your new home falls below $650,000 (or $400,000 for vacant land), you may be eligible for a complete exemption from stamp duty. For properties valued between $650,000 and $700,000 (or between $400,000 and $450,000 for vacant land), a partial reduction in stamp duty may be available. These value thresholds are current at the time of writing, but they could change so it’s essential to verify the latest figures when making your application.
To apply for stamp duty relief, you will need to meet the eligibility criteria mentioned earlier. It’s worth noting that if you qualify for the first homeowner grant, you will generally be eligible for stamp duty relief as well.
Stamp duty relief for eligible first home buyers provides a valuable opportunity to reduce or eliminate the financial burden associated with purchasing a property. By meeting the eligibility criteria and adhering to the residency requirements, prospective homeowners can benefit from this relief measure and it is no doubt welcomed by any first home buyer currently in the market to find a home.
Our team of conveyancers have over 45 years of experience with real estate in South Australia and can make the process as smooth as possible, whatever you choose. Contact us today on 08 8366 7900 for any assistance. You can also contact us out-of-hours with your enquiry service via Eckermann Assist on 08 8233 3944 or email assist@eckermanns.com.au
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