First home owners grant Tasmania 2023: all you need to know

First home owners grant Tasmania, stamp duty concessions and other first home buyer support

Buying your first home in Tasmania? You can expect to pay $657,500 for a median property, according to Property Update.

Entering the property market can be a challenge for first-time buyers amid high interest rates and record prices.

The Tasmanian government offers grants and concessions to help encourage home ownership for first home buyers.

Tasmania’s first home buyer support includes the following:

• A $30,000 First Home Owners Grant (FHOG) when you build or buy a new home.
• A 50% (stamp) duty concession on established homes worth up to $600,000.
• Shared equity contributions of up to $200,000 through the MyHome Tasmania scheme.
• Access to federal schemes like First Home Super Saver or First Home Guarantee.

Tasmania First Home Owner Grant (FHOG)

In Tasmania, a First Home Owner Grant (FHOG) between $20,000 and $30,000 are applicable for eligible first home buyers who purchase or build a new home after 1 July 2016.

A $30,000 grant applies to transactions that commence between 1 April 2021 and 30 June 2024. The grant is $20,000 for transactions entered from 2016 to March 2021.

FHOG Tasmania eligibility criteria:

• Be an Australian citizen or permanent resident aged 18 and above
• Build or buy a new home (one which has not previously been lived in)
• Occupy the home as your principal place of residence for at least six months within 12 months of your house being built
• Not have owned another residential property in Australia before
• FHOG is a once-off grant for eligible buyers co-funded by state and federal governments to promote home ownership.

How do I apply for FHOG in Tasmania?

The best way to apply for the First Home Owner Grant in Tasmania is by speaking to your broker. They will help advise on your eligibility, which documents you need, and how to apply.

From there, the bank or credit union providing finance (an Approved Agent) will lodge the First Home Owner Grant application on your behalf.

Thinking about buying your first home? A UNO broker can help assess your eligibility for FHOG while finding the best deal for you.

Tasmania stamp duty concessions: Are first home buyers exempt from stamp duty in Tasmania?

There are no concessions or exemptions for first-home buyers who build or buy a new property in Tasmania.

However, eligible first buyers can receive a 50% stamp duty concession on the purchase of their first established home valued up to $600,000.

Tasmania stamp duty concession criteria include:

• Purchase an established Tasmanian home worth $600,000 or less between 1 January 2022 and 30 June 2024
• Occupy the home as your principal place of residence for 6 months continuously, within a year of purchasing the property
• Be an Australian Citizen or Permanent Resident aged 18 and above
• Must not have previously owned a home in Australia
• Cannot have received First Home Owner Grant previously
  

Tasmania stamp duty exemption examples

There are also stamp duty exemptions for transferring property to a partner or spouse, intergenerational farms and pensioners downsizing their homes.

The first home buyers of established duty concession has historical price caps of $5000,000 for properties purchased between March 2012 and December 2021, and $400,000 for properties bought between February 2018 and March 2021.

MyHome Tasmania: shared equity for first home buyers

Tasmanian first home buyers can access up to $200,000 in shared equity through MyHome, a government initiative backed by Tasmania’s Bank Of Us.

MyHome works by providing shared equity options of up to 40% or $200,000 to buy a new home, or 30% or $150,000 for existing properties. The home you are buying can’t be worth more than $600,000.

Under the scheme, the Tasmanian Government buys a share of equity in your property by covering upfront costs. This lowers how much deposit you need and potentially increases your borrowing capacity.

You will be expected to eventually buy back Home Tasmania’s share of the property within 30 years or provide a share of the profit when you decide to sell.

MyHome is available to singles who earn less than $87,509 and couples who earn less than $181,205 annually.

MyHome was introduced by the Tasmanian Government in 2022. Previously known as HomeShare, it is based on similar shared equity schemes available in other states.

Federal support available for first home buyers

• First Home Super Saver Scheme - Use up to $50,000 in voluntary superannuation contributions towards your first home deposit.
• The Home Guarantee Scheme - Government support for individuals, including single parents and rural citizens, to buy a home with a deposit as low as 2-5%.
• First Home Owners Grants - FHOG up to $20,000 are avalible states and territories Australia-wide.

Buying your first home in Tasmania: step-by-step

1. Estimate your borrowing power with UNO’s Borrowing Power Calculator. This will give you a budget for your property.
2. Find the best deal. At UNO, our brokers can find you the best deal by comparing rates from over 20 lenders.
3. Get pre-approval - Submit paperwork like recent paychecks and bank records for pre-approval.
4. Look for a property - Once you have a budget, search for the perfect property. Consider UNO’s partnership with Abodable offering customers up to $51,000 cash back when purchasing a new home*.
5. Make an offer on your property and settle within 45 days.