AUTHORS

Mira Brewster
Mira Brewster
State Tax Specialist
Liam Telford
Liam Telford
National Tax Technical Director
Image of Sam Mohammad, Partner at RSM Brisbane, leading the National indirect tax practice. Specialises in GST, duty, payroll tax, and fuel tax credits for property, government, mining, and infrastructure sectors, including ASX-listed developers and multinational companies.
Sam Mohammad
Partner

On Thursday, 6 June 2024, the South Australian Treasurer, the Hon Stephen Mullighan MP, handed down the State Budget for the fiscal year 2024-25, alongside Premier Peter Malinauskas. 

The State Budget focused on critical areas such as stamp duty and housing affordability. The Budget papers for 2024-25 include the following key tax relief measures for first home buyers:

1. First Home Buyer Stamp Duty Relief – Removal of Property Value Thresholds

  • The government has allocated $14 million over four years to eliminate property value-based stamp duty thresholds for eligible first home buyers.

From 6 June 2024, no stamp duty will be payable for first home buyers who enter into a contract to purchase a new home or vacant land for building purposes, regardless of the purchase price.

  • Previously, stamp duty relief was only available for eligible new homes valued up to $650,000, with relief gradually phasing out for properties valued up to $700,000. Similarly, vacant land purchases for new home construction had a stamp duty exemption for land valued up to $400,000, with relief phasing out for land valued up to $450,000.
  • With the removal of these thresholds, all eligible first home buyers will now enjoy complete relief from stamp duty.

2. First Home Owner Grant (FHOG) – Removal of Property Value Cap

  • The State Budget also allocates $16 million over four years to eliminate the property value cap of $650,000 for FHOG-eligible contracts entered into on or after 6 June 2024. The FHOG provides eligible purchasers with a $15,000 grant to assist with the purchase of a new home.
  • The FHOG provides a $15,000 grant to assist eligible purchasers with the cost of buying a new home.
  • Removing the property value cap is estimated to benefit an additional 300 first home buyers annually.
  • Importantly, eligible buyers can now receive both the FHOG and stamp duty exemption for the same property, provided they satisfy prescribed eligibility criteria.

These changes signal a positive shift towards making homeownership more accessible for first-time buyers in South Australia. As the property market evolves, these measures aim to alleviate financial burdens and encourage home ownership. These developments could significantly impact the purchasing decision of prospective first home buyers in South Australia.

A separate, unrelated measure was announced to provide an exemption from payroll tax on the taxable wages of general practitioners (GP) to the extent they relate to bulk-billed services. This measure will commence on 1 July 2024, immediately after the payroll tax amnesty extended to GPs by the South Australian Government ends and is designed to provide protection for current bulk-billed patients and an additional incentive for GPs to bulk bill patients.

DISCLAIMER

This article provides general information and should not be considered professional advice. For personalised advice based on your individual circumstances, please contact Mira Brewster or Sam Mohammad.