Posted on: 31 May 2024
The South Australian Liberal Party wants to keep the dream of home ownership alive, so it is calling on the Malinauskas Labor Government to expand stamp duty relief for first home buyers in next week’s State Budget.
Eligible first home buyers currently pay no stamp duty if they purchase a newly built property valued below $650,000.
The Opposition is calling for the threshold to be lifted from $650,000 to $750,000 for new homes to better reflect the current median house price.
It’s also calling for the introduction of a $10,000 reduction on stamp duty for established homes up to the value of $750,000 for first home buyers.
First home buyers who purchase vacant land valued below $400,000 currently pay no stamp duty. The Opposition also wants that threshold lifted to $450,000.
Labor’s current scheme has seen a low take up, with Treasury officials revealing in late March a mere 1,169 applications for stamp duty relief for first buyers had been approved - falling well below the almost 4,000 estimated that would benefit per year.
If the Malinauskas Government does not adopt these changes, the Liberal Party is committed to lifting the current threshold for stamp duty relief for new homes and introducing a stamp duty reduction for established properties for eligible first home buyers should it win the next State Election.
Opposition Leader, David Speirs, said with the rising cost of living, stamp duty is a huge barrier for many South Australians wanting to enter the property market, particularly for those looking to buy their first home.
“House prices just keep climbing in South Australia, making the dream of home ownership increasingly feel like it’s out of reach,” Mr Speirs said.
“We believe the current eligibility criteria for stamp duty relief for first home buyers is too narrow to truly help those who want to enter the property market.
“The changes we’re calling for better reflect the current state of the housing market and we believe they could be life-changing for many potential first home buyers.”
Shadow Minister for Finance and Tax Reform, Heidi Girolamo, said South Australia is one of the only states that does not offer stamp duty exemptions for established properties for first home buyers.
“At a time when the Malinauskas Labor Government is receiving record tax revenue, we want to see more levers being pulled that allow more South Australians to own their own home,” Ms Girolamo said.
“Not all first home buyers can or want to build a new home, so that’s why we’re calling on the Malinauskas Labor Government to provide a $10,000 reduction on stamp duty for established properties up to $750,000.
“We believe these changes have the potential to make thousands of South Australians homeowners for the first time.”
Shadow Treasurer, Matt Cowdrey, said it’s obvious Labor’s current scheme is missing the mark.
“Earlier this year, Treasury officials revealed just over a thousand applications for stamp duty relief for first home buyers had been approved – well below the almost 4,000 Labor estimated would benefit from the scheme,” Mr Cowdrey said.
“It’s clear the gap between the current threshold for relief and the median house price is far too wide to make the dream of ownership a reality for so many South Australians looking to buy their first home.
“We need to modernise policies to better match the realities of today’s housing market.”
A Speirs Liberal Government elected in 2026 is committed to significant tax reform.
Earlier this week, the Liberal Party called on the Malinauskas Labor Government to support struggling small businesses through the cost of living crisis by lifting South Australia’s payroll tax threshold from $1.5 million to $2.1 million, and to provide exemptions for apprentices and trainees.
If Peter Malinauskas ignores these calls, a Speirs Liberal Government is committed to lifting the payroll tax threshold.