Since early 2024 first home buyers purchasing property in Tasmania for $750,000 or less have been taking advantage of a 100% stamp duty exemption.
That scheme will come to an end on 30 June 2026, meaning that if your property purchase is due to settle after that date, you won’t receive the exemption.
Additionally, if you’re currently in the middle of a property transfer and expecting it to finalise by the end of the month, you need to be conscious that any delay could expose you to increased costs and risks.
No exemptions will apply for house purchases that settle after 30 June 2026, but according to the State Revenue Office applications for refunds of stamp duty already paid will still be processed after that date, as long as you meet the eligibility criteria.
Other incentives for first home buyers
Although it seems there will be no stamp duty relief available after 1 July for first home buyers in Tasmania, new buyers coming into the property market will still be able to access numerous types of financial support.
The First Home Owner Grant (FHOG) is a one‑off state government payment to eligible first home buyers to help fund the purchase or construction of brand-new homes. As announced in the recent state budget, from 1 July 2026 the grant will reduce to $20,000 from its current level of $30,000. For those seeking the higher level of financial assistance, your new build needs to start by 30 June 2026.
Tasmania’s MyHome Shared Equity Program is another initiative, delivered through Homes Tasmania and Bank of Us, helping eligible buyers own a home sooner by co-purchasing the property with the government. It can help you make your first home purchase with as little as a 2% deposit, with the government contributing up to 40% of the property value in some instances, with that share to be repaid or bought out over time.
National incentives available
The remaining initiatives open to first home buyers in Tasmania are national schemes. The federal government’s 5% Deposit Scheme for instance, lets you buy your first home with a 5% deposit and no Lenders Mortgage Insurance. As part of this scheme the federal government guarantees up to 15% of your home loan.
Alternatively, the First Home Super Saver Scheme (FHSS) allows you to make personal voluntary contributions into your superannuation fund in order to save for your first home. Under the FHSS scheme, tax‑effective savings of up to $50,000 can be made via your fund. If you are purchasing property in Tasmania for the first time you should seek legal advice to determine what incentives are available and what steps you will need to take in order to make your first involvement in the local property market as easy as possible.
Contact the Conveyancing team at Simmons Wolfhagen for tailored advice on your home purchase.