Federal Budget 2024 - How will this impact your business? Read the latest insights
The State confirmed it will be $249m in deficit in the 2022-23 financial year but will return a surplus from 2023-24 of $250m and $639m by 2026-27. However, state debt is due to grow in the coming years, blowing out to $37.5b by 2026-27 in order to fund the Government’s future infrastructure and health investments.
This budget also saw the removal of stamp duty for first home buyers of new homes or vacant land, as well as an increase to the First Home Owner Grant value cap.
The State Budget features some meaningful changes to stamp duty for first home buyers and the introduction of the Build to Rent (BTR) land tax concession for eligible developments.
In what is set to be a significant change, the Government has announced that it will abolish stamp duty for eligible first home buyers who purchase a new home or vacant land to build a new home.
For new homes, no stamp duty will be payable on the purchase of an eligible new home valued up to $650,000, with relief progressively phasing out for properties valued up to $700,000. This will provide first home buyers with stamp duty relief of up to $29,580.
For vacant land, no stamp duty will be payable on land purchased to build a new home valued up to $400,000, with relief progressively phasing out to land valued up to $450,000. This will provide first home buyers with stamp duty relief of up to $16,330.
The relief will apply to first home buyers who enter into a contract to purchase a new home or vacant land to build a new home on or after 15 June 2023. To be eligible for relief, the buyer must occupy the new home as their principal place of residence.
The government has also increased the existing FHOG property value cap from $575,000 to $650,000 in light of continued growth in property prices. The change applies to contracts entered into on or after 15 June 2023.
Similar to the announcements made in the Queensland State Budget earlier this week, the South Australian Government is proposing to introduce a land tax concession for eligible Build to Rent developments, equal to a 50 per cent reduction in the taxable value of the land. The concession applies to eligible developments where construction commences on or after 1 July 2023 and is available from the 2023-24 financial year up to, and including the 2039-40 financial year.
Details of the eligibility criteria are yet to be confirmed.
In the 2022-23 Mid-Year Budget Review, the Government announced land tax and stamp duty relief for taxpayers whose properties and vehicles were destroyed or substantially damaged by the River Murray flood. The Government has announced that it will provide a further $142.8m of relief to the residents and businesses damaged by the flood, which will continue into 2023-24.
If you wish to discuss the South Australian Budget announcements, please reach out to a Grant Thornton Partner today.
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