Understanding Stamp Duty Exemptions for First Home Buyers in South Australia

First home buyers in South Australia can access a full exemption from stamp duty for contracts signed after 6 June 2024. This guide details eligibility criteria and qualifying properties, including new homes and off-the-plan apartments. Take advantage of these concessions to increase your deposit, save on lenders mortgage insurance, and enhance your borrowing power. Contact a UNO broker for expert assistance!

Purchasing your first home can be financially daunting, with numerous costs to consider. One of the largest expenses is stamp duty, a tax imposed by the government on property transactions. Fortunately, for first home buyers in South Australia, if you sign a contract on or after 6 June 2024, you may be eligible for a full exemption from stamp duty, provided you meet specific criteria.

This article will help you understand whether you qualify for stamp duty concessions, what types of properties are eligible, and why it’s important to take advantage of these savings as you step onto the property ladder in South Australia.

What Properties Qualify for Stamp Duty Relief?

From 6 June 2024 onwards, first home buyers in South Australia can potentially benefit from a full exemption from stamp duty if they are purchasing specific types of properties. These include:

  • A new home: This refers to a house, flat, unit, townhouse, or apartment that has never been previously occupied or sold as a residence. Importantly, substantially renovated homes (where most of the property has been restored or rebuilt) may also qualify as a "new home."
  • An off-the-plan apartment: Purchasing an apartment that hasn’t been built yet is another way to qualify for stamp duty relief.
  • A house and land package: If you’re signing a comprehensive building contract to build a new home on a piece of land, you may also be eligible.
  • Vacant land: If you’re purchasing vacant land with the intent to build your new home, you could receive a full exemption from stamp duty. However, it’s essential to start construction within a specific time frame to maintain eligibility.

However, it’s crucial to note that stamp duty relief is not available on the purchase of an established home, even if your intention is to knock down the house and rebuild. Subdividing a block of land and building on one of the pieces also does not qualify for stamp duty relief. So, if you’re planning to buy an older property or land with an existing home, you will not be eligible for these concessions.

Who is Eligible for Stamp Duty Concessions?

To be eligible for a full exemption from stamp duty as a first home buyer in South Australia, there are several criteria you must meet. You must be:

  • An Australian citizen or permanent resident: Special provisions also apply to New Zealand citizens who hold Special Category Visas and are permanently residing in Australia. In cases where there are multiple applicants, only one person needs to meet this requirement.
  • At least 18 years of age at the time of applying for the stamp duty relief.
  • A natural person: This means the applicant must be an individual, not a company or trust.

Additionally, you or your spouse/domestic partner must not have:

  • Previously occupied an Australian residential property in which you had a relevant interest for six months or longer.
  • Previously received stamp duty relief for first home buyers in any state or territory of Australia. However, if you did receive stamp duty relief but later repaid it, you might be eligible to reapply.

To maintain your eligibility, at least one applicant must reside in the home as their principal place of residence for a continuous period of at least six months. This must commence within:

  • 12 months from the settlement date if you are purchasing a new home.
  • 12 months of the date the Certificate of Occupancy is issued, or within 36 months of settlement, whichever comes first, if you’re purchasing vacant land to build your new home.

Why You Should Take Advantage of Stamp Duty Concessions

Saving on stamp duty can make a significant difference when purchasing your first home. Stamp duty is one of the largest upfront costs associated with buying a property, and for first home buyers, reducing or eliminating this expense can offer several benefits:

  • A larger deposit: With less money spent on stamp duty, you’ll have more funds available for your deposit. A larger deposit can reduce your loan amount and make your home purchase more affordable over the long term.
  • Avoiding Lenders Mortgage Insurance (LMI): If you can put down a deposit of at least 20%, you may avoid paying LMI. This is a type of insurance that lenders require when your deposit is below 20% of the property’s value. stamp duty concessions could help boost your deposit and potentially avoid this costly insurance.
  • Increased borrowing power: By reducing the upfront costs, such as stamp duty, you may be able to increase your borrowing capacity, giving you access to a wider range of properties.
  • More competitive interest rates: Another advantage of a larger deposit is a lower loan-to-value ratio (LVR). Lenders view a lower LVR as less risky, which can lead to more competitive interest rates. This could mean long-term savings over the life of your loan, making your first home purchase more affordable in the long run.

In a competitive housing market, every dollar saved matters. By taking advantage of these concessions, you can make your dream of owning your first home more achievable.

Next Steps: Speak to a UNO Broker

Understanding whether you qualify for a full exemption from stamp duty as a first home buyer in South Australia is essential to making an informed decision. With the right guidance, you could save thousands of dollars on your home purchase.

If you’re ready to take the next step, or if you have more questions about how stamp duty relief applies to your situation, speak to a UNO broker today. Our team is here to help you navigate the process and ensure you’re maximising your savings while securing your first home. Let us guide you through the complexities of home buying so that you can move forward with confidence.

‍

Source: Government of South Australia

Book Call Now

Janu Dhayanathan

October 24, 2024
Try Plans, by UNO
Mortgage calculators completely reimagined
Get Started
Considering a purchase or refinance?

Try Plans by UNO

Mortgage calculators completely reimagined
Get Started
☎ đŸš« No cold call promise

Related Articles

TESTIMONIALS

What our customers are saying

Kathryn Cretney
November 14, 2024
Paul helped us from day one before we even arrived in Australia so we knew exactly what we needed to prepare. He’s got a tonne of knowledge and was really lovely and supportive to deal with. Helpful and easy going. Would highly recommend - now in our first Aussie home and Paul made the process all very easy!
Read more
Sean O'Neill
November 14, 2024
We received excellent service and a tailored solution to our home loan requirements from Uno. Paul kept us informed at all milestone stages and throughout the process he demonstrated a ‘can do’ attitude that ultimately allowed us to get over the line and meet our deadline. We’re most grateful and very impressed. Highly recommend
Read more
Crush Huston
November 8, 2024
Paul is an amazing broker. Communicative, responsive and knows his stuff! Highly recommend
Read more
Amanda Pearce
November 7, 2024
After just four months in Australia, our New Zealand home sold, prompting us to stop renting and invest locally. We found Paul through a Kiwi Facebook group, and his exceptional service exceeded our expectations. From initial contact, Paul provided clear explanations, friendly communication, and prompt responses to our queries, making our mortgage process remarkably smooth. We highly recommend him.
Read more
Dom Saric
November 3, 2024
Mike Parsons went above and beyond to ensure that our refinancing journey was painless and successful. He was communicative, accessible (even working while on holidays!), and his knowledge of the systems at play meant that he picked up on things that other brokers missed. Would 100% recommend Mike, and will definitely be back next time we need a broker.
Read more
Ashleigh Breaden
October 31, 2024
Mike Parsons handled our refinance of our home loan with ease and a depth of knowledge that ensured we got the best deal possible for our situation. We didn't have an easy one to solve for with my husband being self employed and we were consolidating finances as well for a car loan. But Mike handled it all for us and once we had provided him with all the documents we literally didn't have to do a thing after that, it was so easy and so quick we are super happy with the experience! Top notch! Highly recommend!!
Read more
Kyle Richards
October 10, 2024
Absolute legend, helped me through the first home buyers scheme, explained everything in a way that made sense, was very knowledgeable and a joy to work with.
Read more
Chloe S
October 8, 2024
Mike Parsons made it possible for us and the in laws to get 2 pretty complicated home loans. He helped us through everything and we'd be happy to use Mike and the team again for anything we needed. Thanks again!
Read more
Sam Rezai
October 2, 2024
I have gone through 6 different mortgage brokers prior to meeting Andrew Wyers. He is the most patient mortgage broker I’ve encountered and also the most knowledgable about the bank’s lending process and products available. It took me 1 year to find a house I was happy with and Andrew was always there to assist with any issues or questions I had; he always return my phone call, even on the weekends or when his away on holidays. The loan process was smooth and I had no complications. The process with Andrew was again nice and easy, he took the time to find and put together the right package that was suited to my situation. I have recommended Andrew to my family & friends and everyone have been grateful and completely satisfied with his service.
Read more
S Wilko
September 23, 2024
I had not dealt with Scott or UNO before finding them on the internet. Even as an Australian citizen living and working overseas, I knew obtaining a loan would be difficult. However, Scott went above and beyond what I expected from a mortgage broker. I genuinely don’t think you could find another company that works as hard as they did to get my home loan approved. I cannot recommend them highly enough. Everyone I dealt with at UNO were extremely professional and helpful. If you are looking for a broker, you would be mad not to give them a go. Thanks to Scott Wilkinson, Dalby Bajwa, Jena Lasquite and Andrew Pacini. Shaun.
Read more
Shan Liao
September 3, 2024
I had an outstanding experience with Tian Liu. He was incredibly professional and attentive, going above and beyond to meet my needs. His expertise and dedication made the entire process smooth and stress-free. Tian's deep knowledge of the market and commitment to finding the best solutions for his clients truly sets him apart. He was always available to answer my questions and provided invaluable guidance throughout. I highly recommend Tian Liu to anyone in need of a reliable and skilled broker!"
Read more
Nathanael Chin
September 3, 2024
Tian Liu provided exceptional service throughout the entire process. His professionalism and keen attention to detail were evident from the start. Tian consistently kept us informed and offered insightful advice that made us feel confident in our decisions. He truly cares about his clients and works tirelessly to ensure the best possible outcome. We couldn't be happier with his assistance and highly recommend Tian to anyone looking for a trustworthy and knowledgeable broker.
Read more