Stamp duty on established homes is continuing to be a significant barrier for first home owners trying to enter the property market in South Australia – with latest data showing a median priced house in metropolitan Adelaide comes with a stamp duty bill of nearly $50,000.
The Opposition has previously called on Peter Malinauskas to introduce a $10,000 reduction on stamp duty for established homes for eligible first home buyers – a sensible initiative that he has stubbornly refused to adopt.
Leader of the Opposition, Vincent Tarzia said that despite the Government collecting record stamp duty revenue, young first home buyers are still required to pay nearly $50,000 upfront in tax on existing properties.
“South Australia is currently the only state in the country that doesn’t offer some form of stamp duty for first home buyers purchasing established homes,” Mr Tarzia said.
“This comes at a time when the median house price in Adelaide has skyrocketed to $1 million and many first home buyers are desperate to get into the market with an established property like a unit or townhouse, rather than waiting years for a new build to be completed.
“For them to then be slapped with a $50,000 stamp duty bill, to fund the Government’s out of control spending, pushes the dream of owning a property even further out of reach for young South Australians.”
Currently, it takes 11.8 years on average to save for a house deposit in South Australia and it’s a sad prospect to think this number could increase even more, as housing becomes more and more unaffordable.
“The Government giving stamp duty exemptions for all newly built homes with no upper price limit, while providing no stamp duty relief to a young person who has saved the money to buy a modest existing home, is a cruel reality for those who can’t afford to build,” Shadow Minister for Housing, Michelle Lensink said.
“We know first home buyers do traditionally look to buy existing properties, as the impost of building wait times and financing a build whilst renting, simply isn’t achievable for most.
“Stamp duty relief would go a long way in supporting and enabling first home buyers wanting to purchase an existing property and we’re calling on the State Government to consider this in the upcoming budget."
