There are a number of home buyer grants, relief and stimulus packages currently available in South Australia for eligible individuals buying a property. Here, we’ve rounded up all the information for you, outlining their various conditions and who is eligible to apply.
- HomeBuilder Grant
- First Home Owners Grant
- First Home Loan Deposit Scheme
- Commonwealth First Home Super Saver Scheme
- Land Transfer Stamp Duty Relief (Bushfire)
- HomeStart Starter Loan
6 home buyer grants available in SA
1. HomeBuilder Grant
A National Partnership Agreement between State and Federal Government, the HomeBuilder Grant SA is either:
- A $25,000 grant: non-taxable toward building a new home or a substantial renovation (must have a contract to build, buy or renovate for owner occupation and this contract must be signed between 04-Jun-2020 and 31-Dec-2020); or
- A $15,000 grant: for building contracts (non-taxable toward building a new home or a substantial renovation) signed between 1 January 2021 and 31 March 2021, inclusive.
Who can apply?
- Available to eligible owner-occupiers (including first home buyers) who build a new home, substantially renovate an existing home, or buy an off-the-plan/new home.
- Must have a contract to build, buy or renovate for owner occupation and this contract must be signed between 04-Jun-2020 and 31-Dec-2020 (inclusive) for the $25,000 grant and signed between 1 January 2021 and 31 March 2021, inclusive for the $15,000 grant.
- A $15,000 grant for building contracts (non-taxable toward building a new home or a substantial renovation) signed between 1 January 2021 and 31 March 2021, inclusive.
- An extended deadline for all applications to be submitted, including those applying for the $25,000 grant and the new $15,000 grant. Applications can now be submitted up until 14 April 2021 (inclusive). This will apply to all eligible contracts signed on or after 4 June 2020.
- Construction must commence within 6 months of the date of the contract. There has been an extension to the construction commencement timeframe from three months to six months for all HomeBuilder applicants. This will apply to all eligible contracts signed on or after 1 January 2021, but will also be backdated and apply to all contracts entered into on or after 4 June 2020.
- Where an eligible contract is signed on or after the 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020. Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.
- If off plan/new home – it needs to be a sales contract rather than a building contract.
- Income limits: less than $125,000 single and $200,000 couple in either FY19 or FY20.
- A new build property price cap (house and land) of $750,000 or less for SA and as at 29-11-2020 there is a new price cap of $950,000 for NSW and $850,000 for Victoria, (construction must commence within 6 months of the date of the contract) or substantial renovation between $150,000 and $750,000 (and value of existing house & hand does not exceed $1.5m).
This information was updated on 30-Nov-2020, following the extension and related changes announced on 29-Nov-2020. To apply click here.
2. First Home Owners Grant
Provided by the SA State Government, the First Home Owners Grant is a $15,000 non-taxable grant toward the purchase or construction of a new residential property.
Who can apply?
- First home buyers with a contract to purchase new residential property or build a new home – house, flat, unit, townhouse or apartment.
- New residential property up to a market value of $575,000. Not for established homes.
- Must be principal place of residence for 6 continuous months starting within 12 months of either:
- signing the contract to purchase, or
- date construction completed.
- Must not have owned a residential property prior to 1-Jul-2000.
- Must not have owned a residential property in Australia on or after 1-Jul-2000 and occupied it continuously for 6 months or more.
There are many financial institutions that have been authorised as Approved Agents to process applications. If you are obtaining finance through one of these financial institutions, you may apply directly through them.
3. First Home Loan Deposit Scheme
Administered through National Housing Finance and Investment Corporation, this Commonwealth Government scheme allows eligible purchasers to borrow without Lenders Mortgage Insurance if they have a deposit between 5% and 20%. The Government acts as guarantor for up to 15% of the loan.
Learn more here: 2020 First Home Loan Deposit Scheme
Note: This is a capped places scheme. i.e. the scheme runs out once the allocated number of places are all used.
Who can apply?
- First home buyers with a minimum 5% deposit.
- Income limits: $125,000 singles, $200,000 couples.
- Property price cap is $550,000 for Adelaide and regional centres, and $400,000 for the rest of the State.
Apply via participating lenders.
4. Commonwealth First Home Super Saver Scheme
The Commonwealth First Home Super Saver Scheme by the Federal Government allows first home buyers to withdraw voluntary superannuation contributions of up to $15,000 per financial year to pay towards a deposit.
Who can apply?
- A first home buyer, who has not used the scheme before.
- Any first home buyer ready to enter the housing market. You do not need to have found your home yet, but you will need to buy a home within 12 months of withdrawal. Possible to request the Australian Tax Office to extend this to 24 months.
- You must apply for and receive a determination before signing a contract for your first home.
- You must have made voluntary contributions to your super fund after 1-Jul-2017. Concessional and non-concessional contributions count slightly differently. Super guarantee contributions by your employer do not count.
- Withdrawal limits: $30,000 for singles and $60,000 for couples. If not used, they can be returned to superannuation or a tax payment of 20% needs to be made on the withdrawal.
Apply online using your myGov account or by completing a First home super saver scheme – hardship application form.
5. Land Transfer (Stamp duty relief) Bushfire
This SA Government initiative provides stamp duty relief of up to $48,830 on a replacement home (or vacant land on which a replacement home will be built) anywhere in South Australia.
Who can apply?
- Anyone replacing an existing home that was destroyed by the 2019/2020 bushfires until 20-Jan-2024.
- NB: If property value is $1m plus, the relief is capped at $48,830.
To apply: Your conveyancer can apply for relief on your behalf at the time they are processing the transfer. Your conveyancer will need a copy of the police report or insurance claim evidencing that the home has been destroyed.
6. HomeStart Starter Loan
An initiative of the 2019 South Australia State Budget and supported by the Affordable Housing Fund, the HomeStart Starter Loan is a secondary loan taken out with a primary HomeStart loan to help cover the upfront costs for buying or building a home.
The HomeStart Starter Loan has a five-year term, with no repayments required or interest charged during those five years. At the end of the five years, if the HomeStart Starter Loan is not paid in full, it will be reviewed and may be transferred to your primary loan balance, which may increase your loan term. Depending on circumstances, all or part of the HomeStart Starter Loan may be extended by HomeStart.
The HomeStart Starter Loan can provide up to $10,000 toward the upfront costs associated with buying or building a home with HomeStart. No interest is charged for 5 years and no repayments are required for 5 years.
Who can apply?
To be eligible for the HomeStart Starter Loan you will need to:
- Qualify for a primary HomeStart loan.
- Have a net household income of less than $65,000 for singles and $90,000 for couples.
- Not own another property.
- Have enough funds to cover the deposit, but not enough for the remaining upfront costs like Stamp Duty.
- In the 2020-21 State Budget, increased eligibility to the HomeStart Starter Loan was announced, however, the details are still to be released. Keep an eye on the HomeStart Starter Loan page on homestart.com.au for further information.
- NB: Starter Loans are limited and are subject to the availability of funding from the Affordable Housing Fund.
This home buyer grants summary is to be used as a guide only and is not legal or financial advice and must not be relied upon as such. It does not take into account the following home buyer grants, which are no longer available in SA:
- Housing Construction Grant
- First Home Bonus Grant
- First Home Owners Boost
- First Home Concession (SD)
- Seniors Housing Grant
- Pre-Construction Grant (off-the-plan apartments)
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What grants are available for first home buyers?
If you are a first home buyer, you may be eligible for the first home owner grant of up to $15,000. This means you need to be buying/building a new home (including a house, flat, unit, townhouse or apartment) in South Australia, and that home will be your principal place of residence.
How much is the first home buyers grant?
Up to $15,000
When to apply for first home buyers grant?
Applications need to be made within 12 months of completing the transaction.
Can you use first home buyers grant as a deposit?
No. The grant is paid at settlement.
Do you get first home buyers grant buying land?
No. The grant applies to a new home suitable for occupation as a place of residence (this can be an off the plan home).
Can kiwis get the first home buyers grant in Australia?
New Zealand citizens permanently residing in Australia who hold Special Category Visas may apply.
Do you get first home buyers grant on established homes?
No. The grant application is for new homes.