What is Stamp Duty? Understanding the Costs of Buying Property in Adelaide

If you’re stepping into the property market, you’ve probably come across the term stamp duty. But what does it mean, and how does it apply to buying real estate in Adelaide? At Ouwens Casserly, we’re committed to providing you with the knowledge you need to make confident property decisions.

Stamp duty, also known as transfer duty, is a government tax payable when purchasing property. It’s calculated based on the property’s value and the state or territory where the purchase occurs. In South Australia, including Adelaide, stamp duty is a significant cost that must be considered as part of your overall budget when planning to buy property.

The amount of stamp duty you pay is determined by the purchase price of the property. In South Australia, it’s applied on a sliding scale, meaning the higher the property value, the more you’ll pay. For example:

• For properties over $500,000, you’ll pay a base duty of $21,330, plus $5.50 for every $100 above $500,000.

To calculate the exact cost for your property, you can use the RevenueSA Stamp Duty Calculator. Keep in mind, stamp duty is in addition to other expenses such as your deposit, legal fees, and property inspections.

Exciting News for First Home Buyers

As of June 2024, the South Australian Government has abolished stamp duty for first-home buyers purchasing or building new homes, with no cap on property value. This initiative is designed to make homeownership more accessible for first-time buyers.

What does this mean for you? For instance:

• If you’re purchasing a new home worth $750,000, you could save over $50,000 when combining the stamp duty exemption with the $15,000 First Home Owner Grant.

This is a game-changer for first-home buyers, removing a significant financial barrier and helping more people achieve the dream of home ownership.

Are There Other Exemptions or Concessions?

In addition to the benefits for first-home buyers, some other situations may qualify for stamp duty exemptions or concessions. These include:

• Transfers between family members.
• Properties inherited through an estate.

It’s always best to consult with a conveyancer to check if you’re eligible for any exemptions or concessions that might reduce your costs.

If you’re a foreign buyer, it’s important to note that South Australia applies a foreign ownership surcharge on top of regular stamp duty for residential property purchases. This surcharge has been in effect since 2018 and must be factored into your total purchasing costs.

How to Plan for Stamp Duty

Buying property is one of the most significant financial decisions you’ll make, but careful planning can make the process smoother. Here are a few steps to help you prepare:

1. Calculate Costs Early: Use tools like the RevenueSA Stamp Duty Calculator to estimate your upfront costs.
2. Explore Exemptions: Check if you qualify for first-home buyer benefits or other concessions.
3. Seek Professional Advice: Speak with a qualified conveyancer or reach out to the Ouwens Casserly team for expert guidance.

At Ouwens Casserly, we understand that buying property is more than just a transaction—it’s about building your future. Whether you’re buying your first home, upgrading, or expanding your investment portfolio, our team is here to help you navigate every step of the process.

We’re proud to be by your side, offering the knowledge and support you need to make it happen!

If you’re ready to take the next step or have any questions about stamp duty or other property-related costs, get in touch with our team today. Together, we’ll help you achieve your property goals.

Disclaimer: Information in this blog is accurate at the time of publication. Ouwens Casserly has relied upon information from external sources in compiling this publication and does not warrant its accuracy or completeness. Please verify details and consult your agent before making any decisions.