Update on first home buyer incentives in South Australia
Posted on April 12, 2024
Housing affordability continues to be a topic of intense media interest.
In South Australia, there are several grants and schemes tailored to support first-time homebuyers, some of which have existed in some form for several years and some of which formed part of the 2023/2024 budget.
By providing these grants and incentives, the South Australian state government aims to promote homeownership, stimulate the housing market, and support economic growth while helping individuals and families achieve their dream of owning their first home.
First Home Owner Grant
If you are a first home buyer, you may be eligible for the first home-owner grant of up to $15,000. There are no requirements as to how the grant must be used.
Eligibility criteria:
- at least one of the applicants must be an Australian citizen or have permanent residency in Australia;
- each applicant is at least 18 years of age;
- the applicant or their spouse/domestic partner must not have previously owned a residential property in any State or Territory in Australia before 1 July 2000;
- the applicant or their spouse/domestic partner must not have acquired a residential property in any State or Territory in Australia before 1 July 2000 and occupied that property as a place of residence continuously for 6 months;
- all applicants must occupy the home purchased or built as their principal place of residence for a continuous period of at least 6 months commencing within 12 months after the completion of the eligible transaction;
- the applicants must be natural persons; and
- the property purchased or constructed has a market value of:
- $650,000 or less where the contract was entered into on or after 15 June 2023; or
- $575,000 or less where the contract was entered into between 17 September 2010 and 14 June 2023.
HomeBuilder Grant
- Applications for the HomeBuilder Grant closed on 14 April 2021, however the deadline for eligible applicants to submit their additional documentation (and obtain full approval and payment of the grant) has been extended to 30 June 2025.
- The amount of the grant was $25,000 or $15,000 depending on the date the new build or substantial renovation contract was signed.
Stamp duty concessions for first home buyers
- Eligible first home buyers in South Australia are not required to pay stamp duty if the value of their improved property is under $650,000. On the purchase of a property valued at $650,000, this is a saving of nearly $30,000.
- A concessional (i.e. reduced) stamp duty rate applies to first home buyers for improved property valued between $650,000 to $700,000.
- The purchase must be of a new home, an off-the-plan apartment, a house and land package or vacant land on which a new home will be built.
- Eligibility criteria are similar to those applying to the First Home Owner Grant.
HomeStart Finance
- HomeStart is a State Government lender focused on providing home loans for South Australians.
- A range of loan options including low deposit loans, loans for graduates and shared equity options are available for South Australian first home buyers.
- In addition, a $10,000 interest-free starter loan is available for South Australian first home buyers who earn less than $75,000 as individuals (or $100,000 for couples) to apply for.
Our conveyancers are experienced in assisting purchasers to lodge applications for relief for first home owners.
Please contact our Property team to discuss how we can help you.
