South Australia’s first home buyers have received a record injection of government support, with more than $120 million in stamp duty relief and First Home Owner Grants delivered over the past financial year, a policy the Malinauskas Labor Government says is directly boosting housing supply and helping thousands onto the property ladder.
In the 2024 – 25 State Budget, the Government abolished stamp duty for all first home buyers purchasing or building a new home and removed the $650,000 property value cap for the $15,000 First Home Owner Grant.
The result?
- $73.5 million in stamp duty relief went to 3,705 households buying a new home or vacant land up from $39.2 million the year before.
- First Home Owner Grant payments jumped $19.3 million year-on-year.
- The average first home buyer was $51,000 better off when combining stamp duty relief and the grant.
Who’s Buying, and Where the Money’s Going
The average age of South Australians accessing the support sits at 32 years old, reflecting a younger cohort taking advantage of the reforms.
The median purchase price for a new home was $766,000, with a median stamp duty saving of $36,000.
When added to the First Home Owner Grant, that’s a substantial leg-up for buyers in an increasingly competitive market.
For Manvi, one of last year’s first home buyers, the difference was life-changing.
“Buying my first home always felt like a distant dream, but the stamp duty relief and First Home Owner Grant made it possible much sooner than I expected,” she said.
“It wasn’t just about the money, it was about finally feeling that home ownership was within my reach. Knowing the government is supporting first home buyers like me makes a huge difference.”
A Supply-First Strategy
Treasurer Stephen Mullighan said the move to abolish stamp duty on new builds only is paying off, both for home ownership rates and construction activity.
“Abolishing stamp duty for first home buyers on new builds is boosting the number of young South Australians getting into their own home and seeing more houses being built,” Mr Mullighan said.
“Last financial year we provided $120 million in support for South Australians to buy or build a new home, meaning the average first home buyer was $51,000 better off. While we’re helping more South Australians buy their first home, the Liberal Party has a plan to increase house prices and put home ownership further out of reach.”
Housing Minister Nick Champion backed the policy’s focus on growing supply rather than inflating demand for existing homes.
“Our Government is not only building more homes for South Australians, but also backing those who need a hand the most and giving them a leg up into the housing market,” Mr Champion said.
“These supports are a kickstart to home ownership that provides security for families and grows our housing supply. We are tackling the housing crisis by growing supply, not fuelling demand for existing homes.”
Construction Figures Support the Approach
According to the Australian Bureau of Statistics, there are tangible signs of the strategy working:
- The number of dwellings under construction in South Australia is up 6% compared to a year ago.
- Dwelling commencements are up 33% year-on-year.
Those figures suggest that more South Australians are choosing to build rather than buy existing stock, a crucial factor in addressing housing shortages without driving prices higher.
The Policy Divide
The Government’s approach stands in contrast to Opposition plans. Shadow Treasurer Vincent Tarzia and the Liberal Party have proposed abolishing stamp duty for first home buyers purchasing both new and existing homes at an estimated cost of $130 million per year or more than $500 million across the forward estimates.
Independent analysts have warned that removing stamp duty for existing properties risks inflating prices further by increasing demand without adding supply.
The Government argues this could undo gains made in tackling affordability by encouraging competition for limited existing housing stock.
The Economics Behind It
Housing economists generally agree that demand-side subsidies, incentives that help buyers without increasing the number of homes available tend to push prices up.
By contrast, supply-focused incentives like the Malinauskas Government’s stamp duty relief for new builds are more likely to put downward pressure on prices in the long term by increasing stock.
Dr. Rebecca James, a housing policy researcher at the University of Adelaide, told The Good Builder the SA model is “aligned with best-practice affordability measures”.
“If you give buyers more purchasing power without increasing supply, prices rise, it’s basic economics,” she said. “Tying assistance to new builds adds to the total housing stock and is less likely to create upward price pressure.”
First Home Buyers Still Face Challenges
While the numbers are encouraging, the road to home ownership remains challenging for many young South Australians. Rising construction costs, tight labour markets, and the difficulty of saving for a deposit in the current rental environment all remain significant hurdles.
The median price of $766,000 for a new home means buyers still need to secure substantial finance, even with up to $51,000 in government support.
Industry groups have welcomed the measures but caution they are not a silver bullet for housing affordability.
Michael Yardley, spokesperson for the SA Master Builders Association, said more work is needed on planning reform, land release, and workforce capacity.
“We need to keep increasing supply, but that requires the land to build on, the approvals to move quickly, and the workforce to get homes completed on time,” he said.
“These incentives are an excellent start, but they must be matched with measures that remove bottlenecks in the system.”
Why It Matters for the Industry
For South Australia’s building industry, the impact is twofold:
- A stronger pipeline of work – particularly for small-to-mid sized builders who rely heavily on first home buyers as clients.
- A demand shift towards new builds – boosting activity in land development, civil works, and trades.
Builders in the community have reported increased enquiry levels from younger buyers in the past year, with many citing stamp duty savings as a decisive factor in moving ahead with a build.
The Bigger Picture
The SA housing market is under the same pressures felt nationwide, rising prices, constrained supply, and growing population demand.
However, the latest ABS data suggests the state’s construction pipeline is expanding at a faster rate than many eastern states.
If the Government’s reforms can sustain that momentum, South Australia could find itself in a stronger position to absorb population growth without the same extreme price inflation seen elsewhere.
For first home buyers like Manvi, the policy is already delivering tangible results.
“For me, this is more than a house, it’s stability, security, and the start of a new chapter in my life,” she said.
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