At Catapult Wealth, we are excited to share some fantastic news for first home buyers and the housing market in South Australia. The recently announced 2023-24 State Budget brings significant relief and support for those looking to enter the property market. With measures such as the abolishment of stamp duty, an increased property value cap for the First Home Owner Grant (FHOG), and a comprehensive housing package, the Government aims to empower individuals and families to achieve their dreams of homeownership. Join us as we explore the details and implications of these initiatives.
South Australia’s 2023-24 State Budget brings significant benefits to first home buyers and the housing market. Stamp duty is abolished for first home buyers purchasing a new home valued up to $650,000 or vacant land valued up to $400,000 for building a new home. Additionally, the First Home Owner Grant (FHOG) remains in place and its property value cap is increased from $575,000 to $650,000, aligning it with Adelaide’s median house price of $675,000.
These measures provide substantial relief, with eligible first home buyers now receiving up to nearly $30,000 in stamp duty savings and a FHOG payment of $15,000. This amounts to a total relief of up to $44,580 from the state government. Approximately 3,800 first home buyers per year are expected to benefit from these initiatives, which will cost $147.3 million over four years.
By focusing on stamp duty relief for new builds and not increasing demand for existing homes, the government aims to encourage the supply of new housing and alleviate pressure on the rental market. This approach supports the building industry, which is experiencing a slowdown as the effects of COVID stimulus measures wane and higher interest rates impact demand.
The comprehensive $474.7 million housing package includes measures such as the construction of 564 additional public homes, the release of over 25,000 new residential blocks, the provision of 700 affordable homes under the National Housing Accord, the development of Franklin Street for social and affordable apartments, rental law reforms, and new housing developments through the Office for Regional Housing in Renewal SA. These initiatives aim to deliver a total of 3,600 new homes and reduce housing costs for approximately 14,000 more homes.
Furthermore, the Malinauskas Government introduces a new 2% deposit home loan through HomeStart for first home buyers constructing a new home, improving on their initial election commitment of 3%. An additional $1.7 million over four years is allocated to extend the Aspire homelessness program, offering intensive case management for individuals at risk of homelessness.
These measures demonstrate the government’s commitment to supporting home ownership, increasing housing supply, and addressing homelessness challenges in South Australia.
We understand the importance of keeping you informed about the latest developments that impact your financial journey. The measures introduced in the 2023-24 State Budget in South Australia provide a strong foundation for first home buyers and the housing market. With stamp duty relief, increased FHOG property value cap, and a comprehensive housing package, individuals and families have more opportunities to step onto the property ladder. If you have any questions or would like guidance on navigating these changes, our team at Catapult Wealth is here to help. Together, let’s build a brighter future for homeownership in South Australia.
Source: Government of South Australia. (2023). Stamp Duty Abolished for First Home Buyers of New Homes. Premier of South Australia. Retrieved from [here]