Property lobby urges stamp duty changes for first-home buyers

First-time homebuyers in South Australia, Tasmania, and the Northern Territory are facing substantial stamp duty charges when purchasing established homes, prompting calls for government intervention. Unlike other Australian states, these jurisdictions do not offer waivers or concessions for non-new properties. For instance, a $700,000 established home in South Australia would incur an additional $32,330 in taxes for a first-time buyer, according to RevenueSA's stamp duty calculator.

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On the back of the federal budget changes recently, clearly investors have vacated the space when it comes to established dwellings, so I think the state government absolutely should look at pulling all levers, as they always tell us, here's a lever that is yet to be pulled.

Bruce Djite, South Australian executive director of the Property Council, urged the government to consider stamp duty concessions for established homes. He noted that recent federal budget changes have led investors to withdraw from the established dwellings market. Djite suggested that state governments should utilize all available policy levers, especially since the market for existing homes has become dormant. He believes this presents a prime opportunity for first-time buyers to purchase homes in areas where they grew up, have jobs, or where their families reside.

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It would be idiotic to do that, what we do is give tax concessions to new builds.

However, South Australian housing minister Nick Champion rejected the proposal, deeming it "incredibly foolish" to increase demand for existing homes. He stated that the government's policy is to provide tax concessions for new builds, calling any other approach "stupid." Champion emphasized that other state governments should not follow such a path.

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If you are on welfare benefits, there would be almost no properties in the entire country that you could afford.

Young people are voicing strong support for the proposed changes. Clementine Cooke-Hall, a 20-year-old architecture student, described buying a house in Adelaide as "out of the question for most young people." She argued for housing to be built for human need rather than profit. University student Sam Menadue found paying stamp duty on established homes unfair and expressed concern that young people might be forced to move further from the city in search of new builds. He warned this could negatively impact city life and nightlife, affecting the younger generation's connection to areas like Hindley Street. Menadue also highlighted the financial strain on young people, who are already struggling with high rents and other living costs while saving for a deposit.

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By moving young people away you're kind of taking away from the nightlife, all the 20-somethings obviously enjoy Hindley Street so how are they going to do that when they live so far up north they can't get there.