Big savings for first-time SA home buyers
Buying your first home has always been one of life’s biggest milestones - and one of its biggest financial challenges. Between saving for a deposit, paying legal and lender fees, and then facing the additional burden of stamp duty, many South Australians have found that homeownership feels just out of reach. But in a major move aimed at improving housing affordability, the South Australian Government has officially abolished stamp duty for eligible first-home buyers who want to buy or build a new home.
Understanding the change
Announced in the 2024-25 State Budget, this reform means that first-time buyers who purchase or construct a brand-new dwelling - whether a house, townhouse, off-the-plan apartment or even vacant land to build on - will no longer pay stamp duty. This marks a major shift from previous schemes that applied only to homes under a certain price threshold. The removal of the property value cap means the exemption applies regardless of the home’s price, provided it’s a new build.
The government’s aim is clear: to ease the upfront financial burden of buying a home and to encourage the construction of new dwellings, thereby helping boost overall housing supply. This change also extends alongside the existing $15,000 First Home Owner Grant, which continues to be available to eligible first-home buyers purchasing or building new properties. Together, these two benefits can amount to significant savings - the government estimates that for a new home around $750,000, a first-time buyer could save more than $50,000 in combined relief and grants.
However, it’s important to understand that this new exemption applies only to new builds or vacant land intended for a new build. If you’re looking to buy an existing, previously occupied home, then the full stamp duty abolition won’t apply.
Who’s eligible and what to know
To qualify, you’ll need to meet the South Australian Government’s definition of a first-home buyer - generally meaning you and your partner haven’t owned residential property before, anywhere in Australia. The property you purchase must be a new home or a parcel of land where you intend to build one. Contracts for off-the-plan apartments and house-and-land packages are also included, provided they meet the ‘new dwelling’ criteria.
Before signing any contract, it’s essential to confirm your eligibility and that your purchase qualifies under the scheme. RevenueSA provides detailed guidance and calculators to help you understand whether your property and timing fit the requirements. Your conveyancer or mortgage broker can also assist in confirming the stamp duty relief you’re entitled to.
How it changes the home-buying equation
For many first-home buyers, stamp duty represents one of the largest upfront expenses - often tens of thousands of dollars on top of a deposit and other costs. With this burden removed, entering the market becomes far more achievable. The savings might mean you can buy sooner, choose a slightly higher-quality build or keep more money in reserve for furnishings, landscaping or contingency funds.
But while this is good news, it doesn’t eliminate every challenge. Building a home, or buying a property off-the-plan, involves a longer and more complex process than purchasing an established house. There are additional decisions to make, from selecting the right builder and contract type to understanding construction timelines and potential delays. It’s important to go in with eyes wide open and to get professional advice - especially if this is your first experience navigating the building process.
For these reasons, first-time buyers should take the time to map out their budget carefully, factoring in all costs and contingencies. It’s worth seeking independent building consultancy advice before committing to any build contract or land purchase contract, to ensure the project is financially and technically sound.
