This article is from the Australian Property Journal archive
HOUSING takes centre stage in the Malinauskas government’s state budget, with plans to waive stamp duty for first homebuyers set to help almost 4,000 into the property market.
The South Australian State Budget 2023-24 is pouring $474.7 million into its housing package, which will support the building of around 3,600 homes over the next five years.
The package stands out from much of the country by investing not just in social and affordable housing but in public housing.
This will mark the first significant boost to public housing in the state in a generation with 564 new homes added and the sale of a further 580 public housing properties stopped.
The budget will still deliver more than 1,200 social and affordable homes, including circa 700 affordable homes in its share of the National Housing Accord.
The government will also invest in its single largest residential land release, which will see 25,000 new blocks released across Adelaide’s northern and southern suburbs.
While in supporting further regional housing, the government will establish an Office for Regional Housing and establish a Regional Key Worker Housing Scheme that will build more homes for health workers, teachers, police officers, and other regional workers.
392 apartments will be delivered in developing 111-129 Franklin Street with a capacity for accommodating more than 1,000 individuals, including 137 social and affordable units at a minimum.
The annual income cap for the HomeStart interest free starter loan will be increased from $65,000 to $75,000 for singles and from $90,000 to $100,000 for couples.
HomeStart will also introduce a new home loan for first home buyers, enabling loans with as little as a 2% deposit, building on the government’s election commitment to 3%.
The weekly rent threshold for six-week bonds will also be increased from $250 per week to $800 per week as part of residential tenancy reforms.
These reforms will also see rent bidding banned, expansions to tenants’ rights and information protections and to eligibility for the private rental assistance program.
The government will also invest $1.7 million over the next four year to extend its Aspire homelessness program for another 12 months to 31 December 2024, enabling access for a further 88 people experiencing or at risk of homelessness.
The centrepiece of this year’s budget is abolishing of stamp duty for eligible first home buyers who are purchasing a home valued up to $650,000.
This relief will be progressively phased out for properties valued up to $700,000.
First home buyers will also be supported through the increase in the First Home Owner Grant value cap, which has been upped from $575,000 to $650,000 for eligible contracts entered from 15 June 2023.
With first home buyers also receiving access to a fast-tracked approval process, to see purchasers moved into their new homes sooner.
The combined impact of new budget measures could mean a first home buyer who enters into a contract to purchase a new home valued at $650,000 on or after 15 June 2023, could receive relief of up to $44,580.
