Purchasing a first home is an exciting milestone, and governments sometimes provide incentives to make it more attainable. One of the primary incentives now available in South Australia is Stamp Duty Relief, targeted at first home buyers. Here’s a guide to stamp duty eligibility relief for FHBs, based on the latest regulations effective from 15th June 2023.

Full Eligibility for Stamp Duty Relief

FHBs may qualify for full stamp duty relief if they meet the following conditions:

  • Contracts: Must be entered into after 15th June 2023.
  • New Homes: Valued at $650,000 or less (stamp duty reduced to zero).
  • Vacant Land: Valued at $400,000 or less (stamp duty reduced to zero). This also includes house and land packages.
  • Substantially Renovated Homes: If purchased from a Developer, although further conditions apply.

Partial Eligibility for Stamp Duty Relief

In some cases, FHBs may only partially qualify for relief:

  • New Homes: Valued above $650,000 but below $700,000 (stamp duty partially reduced).
  • Vacant Land: Valued above $400,000 but below $450,000 (stamp duty partially reduced). House and land packages are also included.

Definition of New Home

A new home is defined as a residence that hasn’t been previously occupied or sold. This includes houses, flats, units, apartments (including off-the-plan), and townhouses.

Owner-Occupier Requirements

FHBs eligible for relief on vacant land must have the intention to occupy. The build must be completed, and a Certificate of Occupancy issued within 36 months. Residence in the property must be for 6 months once completed, with a move-in date within 12 months from settlement or the date of the Certificate of Occupancy, whichever occurs first.

Dutiable Value and Applicant Eligibility

  • Dutiable Value: Consideration or capital value, whichever is greater at the date of Transfer.
  • Eligible Applicants: Australian citizens, permanent residents, or eligible New Zealand citizens, who are at least 18 years old, and natural persons.

 

Ineligibility Factors

  • Ownership: Previous ownership of residential property in Australia by the spouse or partner.
  • Prior receipt: Previously received a stamp duty relief payment for eligible FHOB in any state or territory.
  • Companies and Trusts: These are not eligible, except in the case of legal disability.

Application Process

Applications must be lodged through Revenue SA with various supporting documents. Review of an application may take up to 10 business days.

Other Notable Points

  • The stamp duty calculator on the Revenue SA website includes the FHB relief and Foreign Ownership Surcharge.
  • Deeds of Assignment are not applicable to this scheme.
  • Transfer registration fees will still apply.
  • Foreign Ownership Surcharge will not apply on new homes or vacant land with dutiable values of $650,000 or $400,000 respectively but will apply on properties above these values.

Conclusion

The stamp duty relief for FHBs offers significant benefits to new home buyers, making homeownership more accessible. Carefully understanding these guidelines and engaging with the Revenue SA website or a professional conveyancer can help you navigate the eligibility criteria and application process to take full advantage of these concessions.