Improving home ownership

The Hodgman Liberal Government wants to build Tasmania’s future and make this State the most desirable place to live in Australia.

The positive growth in property values means that housing affordability has affected some Tasmanians. There is no doubt that the attractiveness of Tasmania as a place to live and work is driving strong demand in Tasmania’s property market.

We have long supported the First Home Owners Grant which supports first home builders achieve ownership of their first home, due to the broad reaching economic benefits that occur when a home is built with the purchase of housing products plus fixtures, fittings and whitegoods.

However, as our economy continues to grow strongly and as house prices have risen, for many Tasmanians saving to buy their first home it means a larger deposit is required and the cost of property transfer duty has become more of a consideration.

These “growing pains” are the side effect of a strong economy that is seeing solid employment growth and an increasing population.

In response to these challenges, the Tasmanian Government is implementing measures in the 2018-19 Budget that will help to ensure that housing remains affordable and available.

Housing initiatives in the 2018-19 Budget include:

Extending the $20,000 First Home Owner Grant for 12 months, meaning more Tasmanians can realise their dream of building and owning their first home, and providing further support for the Tasmanian construction industry.
Introducing a 50 per cent duty concession for first home buyers (established homes only) who purchase a home up to $400,000 in value, saving up to nearly $7000 in duty.

This measure will improve affordability and help first home buyers into the market. This is a 12 month pilot program that commenced from 7 February 2018 – the date of our election policy announcement.

A 50 per cent duty concession for pensioners who downsize from their current home and buy a new home of up to $400,000 in value, saving up to nearly $7000 in duty. This is a 12 month pilot program that commenced from 10 February 2018 – the date of our election policy announcement.

Housing affordability is an achievable goal for Tasmanians and the Hodgman Liberal Government is determined to deliver on our plan by setting the right initiatives and incentives in a growing economy and a strong market.