When you buy property in South Australia, you are usually liable to pay stamp duty. Stamp duty is a major upfront homebuying cost that all buyers should be aware of – but everyone pays different amounts depending on the value of the property and other factors.
In this article we’ll explain what stamp duty is, how it’s calculated and how it operates in South Australia. While South Australia currently offers no stamp duty concessions or exemptions, we’ll offer alternative ways for first home buyers in SA to get on the property ladder.
What is stamp duty?
Also known as transfer duty, stamp duty is a fee you pay to the government when purchasing land, property and some other assets. It’s a fee you pay to transfer ownership of the asset into your name.
Stamp duty is like a tax. The money it generates is put back into the economy by funding public sectors (e.g. education, roads and transport, healthcare, emergency services).
For properties, the rate of stamp duty varies between states and territories across Australia. It’s important to refer to information specific to the state where you will be purchasing property.
How is stamp duty calculated?
While the rates of stamp duty may differ across Australia, there are several common factors that influence it:
The value of the property or sale cost (whichever is higher)
The location of the property (which state/territory it is in)
The type of property (e.g. owner-occupied, investment property, whether the property is a unit or house)
Whether you are a first home buyer
Whether you are classed as a foreign buyer.
To get an idea of how much stamp duty you could be charged, check out Aussie’s Stamp Duty Calculator.
How does stamp duty work in SA?
In South Australia, stamp duty is paid to the Department of Treasury and Finance of South Australia. It is determined by your property’s value, but some buyers may be eligible for concessions or exemptions.
Here are the rates that determine how much stamp duty you could be charged in SA:
Property value | Transfer duty rate |
|---|---|
$12,000 and below | $1.00 for every $100 or part of $100 |
$12,000 to $30,000 | $120 plus $2.00 for every $100 or part of $100 over $12,000 |
$30,000 to $50,000 | $480 plus $3.00 for every $100 or part of $100 over $30,000 |
$50,000 to $100,000 | $1,080 plus $3.50 for every $100 or part of $100 over $50,000 |
$100,000 to $200,000 | $2,830 plus $4.00 for every $100 or part of $100 over $100,000 |
$200,000 to $250,000 | $6,830 plus $4.25 for every $100 or part of $100 over $200,000 |
$250,000 to $300,000 | $8,995 plus $4.75 for every $100 or part of $100 over $250,000 |
$300,000 to $500,000 | $11,330 plus $5.00 for every $100 or part of $100 over $300,000 |
Over $500,000 | $21,330 plus $5.50 for every $100 or part of $100 over $500,000 |
Stamp duty abolished for first home buyer new builds
In a bid to make buying a home more achievable, South Australia has abolished stamp duty for first-time purchasers on new dwellings.
This 2024-25 budget initiative is anticipated to stimulate housing purchases and benefit an estimated 1,200 first-time homeowners over the next 4 years.
The exemption applies to both brand-new constructions and unsold existing inventory.
By removing the financial burden of stamp duty, first-time buyers can now save a significant amount of money on their property purchase. For example, on a $750,000 property, the savings could be as much as $50,000.
Do foreign buyers in SA have to pay additional duty?
Foreign buyers in South Australia may have to pay an additional duty amounting to 7% of the property’s value.
What stamp duty concessions and exemptions are available in SA?
There is currently no stamp duty exemption or concession in South Australia. Like many other states, however, it does offer the First Home Owners Grant. This gives first home buyers a grant of up to $15,000.
Want to get started on your home buying journey in SA? Find out what your home loan options could be by booking a free appointment with your local Aussie Broker.
