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The Tasmanian government’s first tranche of stamp duty changes are set to be enacted after passing Parliament on Wednesday, 19 June.
Under the new legislation, the state’s first home buyer duty concession has increased from a 50 per cent discount to 100 per cent, while the current dutiable value cap of $600,000 has been raised to $750,000. This means that first home purchasers buying a property of $750,000 or less will not have to pay stamp duty on their home.
The law retroactively applies to any qualifying buyer who purchased their property from 18 February 2024, and extends for a period of two years. The government has promised to assess the feasibility of continuing the program thereafter.
In addition to the first home buyer adjustments, the bill provides a further year for pensioners to take advantage of a 50 per cent stamp duty concession when they sell their existing home and downsize to a new home or unit at a lower cost.
It also extends the existing three-year land tax exemption for all newly built housing that is made available for long-term rental for a further two years to 30 June 2026. A similar one-year land tax exemption for short-term visitor accommodation that’s converted to long-term rental has been extended to 30 June 2026.
In announcing the passage of the legislation, acting Minister for Finance, Michael Ferguson, noted that the program had already helped 8,000 Tasmanians into home ownership over six years, with many more set to benefit under the new parameters.
“These changes will make a real difference in helping Tasmanians buy their first home,” Ferguson said.
Under the previous rules of the first home buyer stamp duty concession scheme, a new home owner would be looking to pay $28,945 on a property priced $750,000. That cost will now be zero.
“The Tasmanian Liberal government is delivering on the things that matter to Tasmanians, and I’m pleased that buying a home will now be easier for thousands of people following the passage of our Stamping Out Stamp Duty policy through the Parliament,” Ferguson added.
The stamp duty adjustments form part of the Tasmanian government’s 2030 Strong Plan for Tasmania’s Future. The net cost of the policy was estimated to be $20.3 million, with the government stating that it intends to offset the revenue loss by introducing a new levy on short-stay accommodation.
Legislation to provide a 50 per cent duty concession on new apartment builds valued up to $750,000 has also passed the house of assembly. It’s expected to move through the Legislative Council without any delays, with the policy to be applied beginning 1 July 2024.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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