What is Stamp Duty and what does it mean for first home buyers?


What is Stamp Duty and what does it mean for first home buyers?

Buying your first home is a big thing. You’ve budgeted for it, saved up for your first home and you are now ready to take the plunge. As a first home buyer it’s a big event. 

But with all the excitement of purchasing your new home you may forget about state taxation liabilities and entitlements – important aspects which will affect your  budget.


Stamp Duty for First Home Buyers

One of the biggest taxation liabilities is Stamp Duty. Whether you are buying your first home, investing in property or purchasing a new home, stamp duty is charged on certain transactions and documents.

As a first home buyer, how much stamp duty will you pay?

The amount of stamp duty you will pay will depend on the purchase price of your first home or the market value of the property on the date of settlement, whichever is higher.

To help you determine the amount of stamp duty you will have to pay, there are various resources and calculators which you can access on the Revenue SA website. It’s important to consider stamp duty in South Australia when you are getting your first home loan.

When is stamp duty payable?

Stamp duty for first home buyers, like all property purchasers is payable when a property is transferred in your name, which includes land, property sales and sale of businesses. It is a requirement for you to pay stamp duty in order to register you as the owner on the Certificate of Title for the property with the Land Services Group.

Stamp duty is charged as a flat rate or it is based on the value of the transaction – both dependable of the type of transaction or documentation.

Stamp Duty can take up a large chunk of your budget

Unfortunately stamp duty can be a significant cost that will take up a large chunk of your first home buyer grant budget and it helps to be prepared and plan for it.

On the other hand, there are some concessions and grants for first home buyers in South Australia, which may come as a relief to you.

First Home Buyers Can Get Stamp Duty Concessions

When you purchase your new home, Revenue SA offers various grants and schemes and one of them is the First Home Owner Grant which is a one-off grant payable to eligible owners.

The other one applies to stamp duty and is called Off-the-plan Stamp Duty Concession. This applies if you have entered into a contract to purchase between 31 May 2012 and 30 June 2018 and is applicable on the purchase of a new or a substantially refurbished apartment which is off the plan or not yet built.

Download A First Home Buyers Checklist

By purchasing your first home off the plan you get concessions.

In this case, you may be eligible for an Off-the-plan duty concession of up to $21,330 which is capped at stamp duty payable on a $500,000 apartment. Partial concessions are applicable for contracts entered into between 1 July 2014 and 30 June 2018.

You are eligible for this concession in addition to the First Home Owner Grant – savings which you can use later for other important investments in your first home.


Other ways to get Stamp Duty Concessions

There are other concessions for first home buyers detailed in the Stamp Duties Act and certain transfers such as a transfer from an estate of a deceased person, may be exempt from stamp duty.

While a lot of information for first home buyers is available on the Revenue SA website along with stamp duty calculators, it is always advisable to consult with your conveyancer or financial institution regarding stamp duty.

As first home buyers it is good to be aware of all other costs you may incur along with purchasing your first home.

As leading Adelaide real estate agents, we can help you with any stamp duty questions you have. Ouwens Casserly specialises in Adelaide real estate sales. The OC Projects team can help you get the right off the plan apartment.


Take a look at our current Ouwens Casserly projects. 

Discover more

Download the First Home Buyers Checklist

Ten Tips for Buying an Off The Plan Apartment


Contact the OC Projects Team



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