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Stamp duty changes to save home owners $100k
The South Australian government has followed through on its campaign promise to boost housing supply by removing stamp duty for older residents to move into smaller dwellings.
Effective immediately, downsizers aged 60 and over will no longer have to pay stamp duty on newly built or off-the-plan homes valued at up to $2 million, provided the property is smaller than their current dwelling.
The abolition of stamp duty could save downsizers up to $103,830 and was part of the government’s election campaign, which included measures such as fast-tracking dwelling approvals and construction and establishing the state’s first portable rental bond scheme.
Premier Peter Malinauskas said that as older Australians downsize, it would boost housing supply for the state’s larger households.
“Removing stamp duty for downsizing to a new home achieves clear objectives,” Malinauskas said.
“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,”
“This policy underlines Labor’s clear objective and clear plan to build more homes.”
Daniel Palumbo, managing director of the property developer Palumbo Group, said he was already seeing strong early signs of the policy’s success.
“For many older South Australians, stamp duty has been one of the biggest barriers to downsizing. Removing the cost is clearly encouraging people to seriously consider making the move.”
“What we’re seeing on the ground is exactly what the policy is designed to achieve, unlocking movement in the housing market and helping to 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,” Palumbo concluded.