Calls for State Government stamp duty policy to be extended

Member for Mount Gambier Troy Bell welcomed the stamp duty policy unveiled in the recent State Government Budget. More than one discussion with local real estate agents, including Key2Sale’s Al Lamond (pictured above right with Mr Bell), regarding stamp duty policy ensured the new parameters would be a welcome addition to the 2023-24 State financial blueprint.

“I do love the stamp duty being abolished for first home buyers – it will allow first home buyers to compete,” Mr Bell said, on the release of the 2023.24 State Budget last mont, but as always the devil is in the detail and the member for Mount Gambier is calling for the policy to widen.

Mr Bell wants the stamp duty rebate for first home buyers to be extended to include cheaper established homes.

The 2023-24 State Budget abolishes stamp duty for first home buyers that purchase a new home valued up to $650,000, or vacant land valued up to $400,000 to build a new home, in a move designed to help more South Australians into home ownership while boosting supply of new homes in the housing market.

“Whilst this is an encouraging initiative which will stimulate the building industry securing ongoing jobs for many trades people and helps to tackle the housing shortage, I am also concerned that it may lead young home buyers into taking on more debt than they need to”, Mr Bell said.

“There is nothing wrong with someone’s first house being a little older and cheaper.

“This incentive should apply to first home buyers regardless if they purchase a new house or an existing house.

“My concern is that by taking on too much debt, people can find themselves in difficult financial positions if something unexpected happens in their life. This could be a reduction in hours at work, the arrival of a baby, a relationship breakdown or some other unexpected event.”

Mr Bell is tapping into values of a bygone era to get more people into the housing market.

“Many young people cannot afford a brand-new home however they should be encouraged to enter the housing market at a lower price point and work their way up,” he said.

Mr Bell was concerned that encouraging young home buyers to purchase brand new homes they may be exposed to extreme financial hardships without the experience of previous homeownership burdens.

“I think that the initiative fails to support the whole picture when it comes to affordable housing in regional communities,” Mr Bell said.

“If we want first home buyers entering the market, we should support all first home buyers not just those who can afford a brand new home.”