No stamp duty, no price cap. South Australian first home buyers are now in a much stronger position.
South Australia’s 2024-25 state budget delivered a major win for first home buyers. The Malinauskas Government abolished stamp duty for eligible first home buyers purchasing or building a new home, with no property value cap. At the same time, the $15,000 First Home Owner Grant became available without any price limit. For a first home buyer purchasing at the SA median house price, these changes represent savings of more than $50,000. If you are thinking about buying or building your first home in South Australia, here is what changed and what it means for you.
For a broader look at changes affecting homebuyers this financial year, see our summary of EOFY homebuyer changes 2024-25.
What changed
Before the 2024-25 budget, first home buyers in South Australia only qualified for a stamp duty exemption on new homes valued up to $650,000. The $15,000 First Home Owner Grant was also capped at that same threshold. Any purchase above $650,000 attracted full stamp duty and no FHOG.
Under the new rules, both the stamp duty exemption and the FHOG apply to all eligible new home purchases regardless of price. There is no upper property value limit. This matters most for buyers in suburbs where median prices have pushed well above $650,000, a category that now includes much of metropolitan Adelaide.
How much you save
A first home buyer purchasing a new home at the SA median house price of $750,000 would previously have received no stamp duty exemption and no FHOG, because the price exceeded the $650,000 threshold. Under the new policy, that same buyer saves more than $50,000, including $15,000 from the First Home Owner Grant and approximately $36,000 or more in stamp duty.
The savings grow with the purchase price, because stamp duty is calculated as a percentage of the property value. Use our stamp duty calculator to estimate exactly how much you would save based on your intended purchase price.
These savings can be redirected into your deposit, reducing the amount you need to borrow and potentially helping you avoid lenders mortgage insurance if you can reach an 80% loan-to-value ratio.
What properties qualify
The SA stamp duty exemption and FHOG apply to new residential properties. Eligible property types include:
Existing homes, secondary dwellings, and investment properties do not qualify. The property must be your principal place of residence and you must be an eligible first home buyer under the scheme’s standard criteria.
Getting finance ready
Stamp duty abolition is a significant help with upfront costs, but you still need to qualify for a home loan. That means having enough deposit, a clean credit history, and income that can service the loan under standard lender assessment rates.
Knowing your borrowing limit before you start searching protects you from falling in love with a property you cannot finance. Check your borrowing power to get a clear picture of what you can afford, then speak to a mortgage broker about which lenders and products suit your situation.
A broker can also help you apply for the First Home Owner Grant as part of the home loan settlement process. The grant is generally paid at settlement for new builds or at contract completion for off-the-plan purchases.
Common questions
Q: Does the SA stamp duty exemption apply to existing homes?
No. The stamp duty abolition for SA first home buyers only applies to new homes, off-the-plan purchases, house and land packages, and vacant land you intend to build on. Existing homes do not qualify. If you are considering buying an established property, you will still need to budget for stamp duty at the standard rate.
Q: Can I use the First Home Owner Grant as part of my deposit?
Yes, in most cases. The $15,000 FHOG in South Australia is paid at settlement, so it can be applied toward your total funds needed to complete the purchase. Lenders count it differently, so discuss this with your broker when structuring your loan and calculating how much of your own savings you still need to have.
Q: What if I am building and need a construction loan?
Construction loans work differently from standard home loans. Funds are released in stages as each phase of the build is completed. You will need a registered builder, an approved building contract, and a fixed-price quote. Your broker can help you find a lender whose construction loan terms suit your project and confirm you qualify for the FHOG and stamp duty exemption on your specific arrangement.