I am a First Home Buyer...

Getting caught up in the excitement of purchasing your first home, you may not be aware of your state taxation obligations and entitlements. It is important to know what these are to ensure that you budget for any state taxation liabilities and don’t get caught out with any unexpected taxes or levies. On the other hand, you may also be entitled to some money through various grants and schemes administered by RevenueSA.

This page only provides information in regards to any payments you are required to make to, or may receive from, RevenueSA. For information regarding other costs and/or entitlements, talk to your conveyancer, financial institution or refer to the Office of Consumer and Business Affairs information brochure ‘Buying your first home: a number of ideas’.

What state taxes and levies are incurred when purchasing a home?

There are a number of taxes and levies incurred when you purchase a home, regardless of whether this is your first home, a new home or an investment property. These are:

  • Stamp Duty

  • Land Tax

  • Emergency Services Levy

Stamp Duty

The largest state taxation liability when purchasing a home is stamp duty, which is incurred on the transfer of the property. The amount of stamp duty you are required to pay is assessed on the purchase price, or the market value of the property at the date of settlement, whichever is the greater.

Stamp duty must be paid in order for you to be registered as the owner on the Certificate of Title for the property with the Land Services Group.

Please click here to access the Stamp Duty on Conveyances Calculator which can assist you in estimating the amount of stamp duty payable.

For more information on stamp duty please click here or contact our stamp duty call centre on 08 8226 3750 or by email.

Land Tax

Land tax is an annual tax which applies to all properties in South Australia, however there are tax-free thresholds and exemptions which exclude a number of properties from the tax.

If you are purchasing a vacant piece of land, or a property that was an investment property for the previous owner, you may be required to pay an amount of land tax at the time of settlement. Generally properties that are resided in by the owner as their principal place of residence are exempt from land tax. Any adjustment of land tax payable will be made by the conveyancer engaged to transfer the property.

If you are required to pay an amount of land tax at settlement, you can apply to RevenueSA for a refund of the amount paid, assuming the property becomes your principal place of residence and all legislative requirements are met. To apply for a refund, you need to complete an Application for Refund of Land Tax paid at Property Settlement Form.

If you are building your first home, and construction is still occurring on 30 June (the date land tax is calculated on), you may find you are liable to land tax. If so, you can apply for an exemption, as long as you move into the property as your principal place of residence before the following 30 June. To apply for an exemption, you need to complete an Application for Residential Exemption Application Form.

For more information on land tax please click here or contact our land tax call centre on 08 8204 9870 or by email.

Emergency Services Levy

The emergency services levy is applied each financial year to properties in South Australia. The money raised through the levy is allocated to fund essential emergency services.

As with land tax, you may be required to pay a proportion of the levy at settlement. The amount will be calculated by the Conveyancer engaged to transfer the property. Each year, as the owner of the property, you will be required to pay the levy, which is calculated on the property's value, use and region.

For more information on the emergency services levy please click here or contact our emergency services levy call centre on 1300 336 150 or by email.

What am I entitled to?

RevenueSA administers the First Home Owner Grant and the First Home Bonus Grant for first home owners.

First Home Owner Grant

You may be eligible for the first home owners grant, which is a once off payment of $7000. There are a number of criteria that must be met in order to be paid the grant, such as it must be your first residential property purchased, you must be an Australian citizen or permanent resident and the property value must not exceed $575,000.

You can complete the eligibility checklist by clicking here and completing the questions asked.

An application must be lodged with RevenueSA or your mortgage provider, assuming they are an Approved Agent. To access the application form click here.

For more information on the first home owners grant click here or contact our first home owners call centre on 08 8226 3750 or by email.

First Home Bonus Grant

If eligible, the bonus grant is in addition to the $7000 First Home Owner Grant.

If you entered into a contract to purchase or build a New Home* on or after 17 September 2010 but before 1 July 2012, or in the case of an owner builder who commences construction of a New Home* on or after 17 September 2010 but before 1 July 2012, please click here for more information about the First Home Bonus Grant of up to $8000.

OR

If you entered into a contract to purchase or build a home (either established or new) between 5 June 2008 and 16 September 2010 (both dates inclusive), or in the case of an owner builder who commenced construction of a home between 5 June 2008 and 16 September 2010 (both dates inclusive), please click here for more information about the First Home Bonus Grant of up to $4000.


*New Home means a home that has not been previously occupied or sold as a place of residence and includes a substantially renovated home.

 

To determine the amount of the bonus grant that you may be eligible for, use the First Home Bonus Calculator.

Applications can be lodged directly with RevenueSA or via your mortgage provider, assuming they are an Approved Agent.

 

This page was last reviewed 14 June, 2011