South Australians aged 60 and over will no longer pay stamp duty when downsizing to a newly built home or off-the-plan apartment, with the change effective for contracts signed from today.
Premier Peter Malinauskas signed off on the reform as his new Cabinet was sworn in, delivering on an election commitment to remove the tax for eligible buyers purchasing new homes valued up to $2 million.
“We are getting on with the job,” said Premier Peter Malinauskas.
“We said this tax abolition would come into effect on the day the new Malinauskas Government is sworn in, and today we honour that commitment.”
“Removing stamp duty for downsizing to a new home achieves clear objectives: it saves tens of thousands of dollars for people choosing to move to a new, smaller home, delivers more existing homes for growing South Australian families, and most importantly it adds to our overall housing stock by incentivising new construction.”
The move is expected to save downsizers up to $103,830.
The policy includes a $1 billion plan to accelerate development, featuring a $500 million Housing Fast-Track Fund to unlock land for new housing, alongside a $500 million Apartment Fast-Track Fund that will see the Government act as guarantor to support new apartment projects in the CBD.
Additional measures include a $29 million Housing Skills Package to bring 1,000 more workers into the construction industry, and a plan to deliver 2,000 Rent To Own homes to help more South Australians transition out of the rental market.
The Government has also committed $140 million to upgrade public housing, including the renovation of 300 vacant homes and the creation of 200 supported accommodation places for tenants with complex needs.
Further initiatives include the introduction of South Australia’s first Portable Rental Bonds scheme, expanded access to HomeStart loans for key workers and graduates, and a new Housing Pattern Book to streamline planning approvals through pre-approved home designs.
A new SA Gas & Water Trust will also be established to coordinate infrastructure delivery in line with the state’s target of building 13,500 homes per year.
Daniel Palumbo, Managing Director, Palumbo Group said, “We’re already seeing strong early signs that this policy is having a real impact on buyer behaviour from downsizers who recognise this is a rare opportunity to make their move while saving significantly on stamp duty.”
“At both our Royal Apartments project in Kent Town and Hillsview Green project in Angle Vale, our sales teams have been fielding a noticeable increase in enquiries from downsizers specifically asking about stamp duty relief.”
“For many older South Australians, stamp duty has been one of the biggest barriers to downsizing. Removing that cost is clearly encouraging people to seriously consider making the move.”
“What we’re seeing on the ground is exactly what this policy is designed to achieve, unlocking movement in the housing market and helping free up larger homes for families.”
“If this momentum continues, it has the potential to be a meaningful driver of both housing turnover and new development activity across the state.”
