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Stamp duty changes set to save downsizers 6 figures
South Australians looking to downsize are set to benefit from changes to the state’s stamp duty policy, with both parties promising discounts to older homeowners ahead of the state elections on 21 March.
With the election around the corner, both parties have put housing at the centre of their campaign platforms, with stamp duty firmly in their sights.
Sitting party Premier Peter Malinauskas has pledged to abolish stamp duty for downsizers aged 60 and over purchasing a newly built or off-the-plan property smaller than their current dwelling.
The stamp duty exemption will apply to properties priced up to $2 million.
On the sale of a $2 million home, downsizers could save themselves $103,830 by avoiding the property tax through the single-use exemption.
The government’s proposal was similar to the stamp duty discount it applied to first home buyers in 2023, which also required properties to be newly built or off-the-plan.
Malinauskas said the government’s plan, expected to cost over $70 million, would help address the state’s housing shortage.
“Our plan to abolish stamp duty for downsizers is specifically calibrated to increase housing supply, while also freeing up larger homes for families,” Malinauskas said.
“By abolishing stamp duty, we are offering a real incentive for older South Australians to downsize.”
Similarly, the state’s opposition leader, Ashton Hurn, also pledged a stamp duty discount for older Australians as part of her party’s election platform.
“South Australians who want to purchase a smaller home face paying upwards of $50,000 in stamp duty, money that should be available for them to enjoy in their later years,” Hurn said
The opposition promised a one-off $15,000 concession for older Australians looking to downsize, with a lower age cap of 55.
The plan is available to properties valued up to $1.2 million and would be available to all homes under the cap, rather than exclusively to new builds, as long as the value is less than the current property.
The only additional eligibility criteria for the scheme are that the sellers have resided in the property for 5 years or more.
Hurn said the stamp duty changes would produce much-needed movement in the property market.
“This incentive will keep more money in their pockets, make buying a smaller home more affordable and, ultimately, open doors for more young families looking to put down roots in a larger home,” Hurn concluded.