The Malinauskas Labor Government has pledged to abolish stamp duty for downsizers aged 60 and over who purchase newly built or off-the-plan homes, as part of its housing policy ahead of the state election.
Under the proposal, eligible South Australians buying a smaller new home valued at up to $2 million would pay no stamp duty. The measure would apply to those who sell their existing principal place of residence and purchase a dwelling with a land or apartment size smaller than their current home. The exemption could be accessed once.
The Government estimates the policy would cost $70 million over the forward estimates. It says the aim is to encourage older residents to move into new housing stock, freeing up larger homes for families.
Premier Peter Malinauskas said the proposal is designed to increase supply.
“Labor’s plan for housing has one clear objective: building more homes.”
He said the concession would apply only to newly built properties, including off-the-plan apartments, and would not extend to existing homes.
“Our plan to abolish stamp duty for downsizers is specifically calibrated to increase housing supply, while also freeing up larger homes for families. By abolishing stamp duty, we are offering a real incentive to older South Australians to downsize.”
Under the plan, a downsizer purchasing a $1 million property would receive a concession worth $48,830. The benefit would rise to $76,330 for a $1.5 million home, and to $103,830 for a $2 million purchase.
Labor has contrasted its policy with the Liberal Party’s proposal, which offers a partial stamp duty waiver of $15,000 for properties valued up to $1.2 million. The Liberal measure would apply to both new and existing homes.
The Retirement Living Council of Australia has expressed concern about policies that reduce transaction costs without increasing supply.
“I think there’s a risk that if you lower transaction costs without addressing new supply that you can actually end up increasing competition for the same limited pool of homes. Sometimes even pitting older and younger buyers against each other for the same type of house which could of course push prices up rather than ease pressure as this particular commitment might want to do.”
Labor argues that limiting its concession to new builds avoids increasing pressure on existing housing stock. The Government has previously abolished stamp duty for first home buyers purchasing new homes, framing both measures as part of a broader strategy to increase construction.
Mr Malinauskas said voters would face a clear choice at the election.
“South Australians now have a clear choice, Labor’s plan to abolish stamp duty for downsizers and build more homes, or the Liberals’ plan for a small rebate that also applies to existing homes, giving downsizers a leg up over first home buyers.”
He added: “Under our plan, seniors can save more than $100,000, compared with $15,000 under the Liberals.”
Support independent community journalism. Support The Indian Sun.
Follow The Indian Sun on X | Instagram | Facebook
Support Independent Community Journalism
Dear Reader,The Indian Sun exists for one reason: to tell stories that might otherwise go unheard.
We report on local councils, state politics, small businesses and cultural festivals. We focus on the Indian diaspora and the wider multicultural community with care, balance and accountability. We publish in print and online, send regular newsletters and produce video content. We also run media training programs to help community organisations share their own stories.
We operate independently.
Community journalism does not have the backing of large media corporations. Advertising revenue fluctuates. Platform algorithms change. Costs continue to rise. Yet the need for credible, grounded reporting in a multicultural Australia has never been greater.
When you support The Indian Sun, you support:
• Independent reporting on issues affecting migrant communities
• Coverage of local and state decisions that shape daily life
• A platform for small businesses and community groups
• Media training that builds skills within the community
• Journalism accountable to readers
We cannot cover everything, but we work to cover what matters.
If you value thoughtful reporting that reflects Australia’s diversity, we invite you to contribute. Every donation helps us maintain the quality and consistency of our work.
Please consider making a contribution today.
Thank you for your support.
The Indian Sun Team
