2023 SA State budget brief


The SA State budget has introduced several new revenue measures:

  • The removal or reduction in stamp duty for first home buyers for properties acquired less than $700,000 after 15 June 2023;
  • A increase in the First Home Owners Grant property value cap to $650,000 from 15 June 2023; and
  • A 50% land tax reduction for eligible build-to-rent developments constructed after 1 July 2023.

Removal of Stamp Duty for first home buyers

The eligibility requirements for the first home buyers stamp relief is the same as the current first home owners grant. This is:

• The owner is a natural person age 18 or over;
• The owner is an Australian Citizen or permanent resident;
• The owner and their spouse must not have received stamp duty relief in any State and/ or previously owned an interest in Australian residential property occupied for at least 6 months;
• The owner must occupy the property as their principal place of residence for a continuous period of at least 6 months within 12 months of when the property can be occupied.

Where the property is vacant land you must move into the property at the earlier of 12 months from a certificate of occupancy being issued or within 36 months of land settlement.
The property must be a new property acquired as:

• A new home – being one that has not previously been occupied;
• An off-the-plan apartment
• A house and land package; or
• Vacant land to build a new home.

Importantly where there is an existing dwelling on the land it will not be eligible. Therefore, there may be a preference to demolishing an existing dwelling before purchase.
The thresholds for applying the concession are:

• Property including house – less than $700,000. The concession phases out between $650,000 and $700,000; and
• Vacant land (including a house and land package) – less than $450,000. The concession phases out between $400,000 and $450,000.

Increase in First Home Owners Grant to $650,000

The increase in the First Home Owners Grant from $575,000 to $650,000 aligns with the exempt threshold for stamp duty relief. An individual purchasing their first home for $650,000 will now save $29,580 in Stamp Duty and receive a $15,000 first home owner grant for a total saving of $44,580.

Land tax reduction for eligible build-to-rent developments

A 50% land tax reduction applies where land is being used for an eligible build-to-rent development commenced after 1 July 2023. The land will be eligible by application and the conditions have not yet been released. The concession will run until the 2039-40 financial year. The concession may be targeted at larger build to rent developments rather than single investor properties, but we will await the details.

For more information on the budget revenue measures visit: State Budget Updates | RevenueSA or call your Bentleys advisor.


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Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.