The state's government made the announcement on Tuesday, removing all stamp duty for first homeowners building or buying new homes.

The measure will be part of the state's 2024-25 Budget due to be handed down on Thursday.

Last year, the SA government abolished stamp duty for first home buyers building or purchasing a new home worth up to $650,000.

The new exemption will remove the cap but still only apply to new homes, meaning first home buyers purchasing existing properties are ineligible.

Caps to lift for first home buyer grants

The government also announced it was abolishing certain property value thresholds for the state's $15,000 first home owner grant.

By accessing both schemes, first home buyers who purchase a new home at the median house price of $750,000 will receive a benefit of around $50,000.

SA Premier Peter Malinauskas said axing stamp duty was targeted specifically at new builds in a bid to increase housing supply in the state.

"Every new home built in our state benefits the rest of the housing market," he said.

"Every first home buyer that can move into a new home means one less buyer or renter competing for existing stock."

The South Australian government estimates the removal of the cap will help another 1,200 additional buyers over the next four years.

Eligible first home buyers building a home can also secure a loan with a 2% deposit through the state's HomeStart scheme, Mr Malinauskas said.

The move would win favour with the property sector, with the Housing Industry Association's Tom Devitt telling the Savings Tip Jar podcast that stamp duty is "one of the worst taxes available".

See: Federal government First Home Guarantee: A Guide


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