Tasmanian first home buyers winners in the 2018/19 State Budget
The first State Budget of the Hodgman Government’s second term has delivered most of the promises made in the 2018 Election held earlier this year. The government has delivered the 2018-19 budget that focuses on record infrastructure spending, but there is also some good news for aspiring first home buyers looking to enter the Tasmanian property market.
Tasmania’s growing economy has resulted in more people wanting to live in the state, but that has led to a shortage of housing available for rent and purchase. The State Government has pledged to bring $25 million of its $125 million Stage Two affordable housing plan forward to 2018-19. This is part of Government’s plan to provide an additional 1,500 new affordable homes. More importantly, as per the Government’s election promise, they have delivered on the promise regarding stamp duty relief and the First Home Owners Grant (FHOG) by announcing the following policies:
- 50% Stamp Duty discount for first home buyers purchasing property worth up to $400,000, a saving of up to $7,000
- An extension of the boosted first home builders’ grant of $20,000, encouraging more houses to be built
- 50% Stamp Duty discount for seniors downsizing to a home that is more suited to their requirements, saving $7,000 and freeing up supply for first home buyers
Below we take a look at the Stamp Duty discount and extension of the FHOG in more detail:
50% Stamp Duty Discount
Previously, Tasmania & South Australia were Australia’s only two states that haven’t delivered any stamp duty concessions/exemptions for first home buyers. The good news for Tasmanian first home buyers in this budget is that they are set to receive the benefit of saving on their Stamp Duty costs from 01 July 2018, which is added to a first home buyer’s minimum deposit requirements. The key features include:
- Available for the purchase of established homes
- Available for purchases that settle between 07 Feb 2018 to 07 Feb 2019 – if our property settled within this period you can apply for a refund retrospectively directly with the Tasmanian SRO
- 50% discount for properties valued up to $400,000
- Set to benefit a large proportion of first home buyers as a great number of suburbs have a median price below $400,000 in the state of Tasmania
- First home buyers can save up to a maximum of $7,000 in Stamp Duty costs.
How much can first home buyers save by receiving the Stamp Duty discount?
|Purchase Price||Full Stamp Duty||Stamp Duty Discount||New Stamp duty|
As we can see from the above table, first home buyer purchasing an established home will be eligible for the discounts, providing some much-needed relief in particular for those wanting to buy pre-existing homes.
$20,000 FHOG Extension for another 12 months
The Tasmanian Government also announced in the 2018-19 State Budget the extension of the $20 000 FHOG/Builders Boost for eligible first home owners, for the buying or building a brand new home. The extension of the scheme means that the $20 000 payment will be available for eligible transactions up to and including 30 June 2019.
For eligible transactions entered into from 01 July 2019 onwards, the grant amount will be reduced to $10 000.
This policy announcement’s aim is to encourage the construction of more homes, which may have the following impacts:
- Create more job opportunities in the construction industry, lowering the unemployment rate
- Increasing supply in a booming Tasmanian housing market where there is a lack of supply in some areas
- Allow first home buyers to receive much-needed assistance as they can use the FHOG as part of their deposit
- Assists future first home buyers as more supply may limit house price gains
How can I take advantage of the new TAS Government initiatives?
Simply complete an enquiry form for a free Discovery Session with an FHBA Coach who can assist you with things like your TAS FHOG eligibility; FHBA 50 Rebate eligibility and borrowing capacity – AT NO COST TO YOU!
It is a good idea to get some expert advice from a qualified lending expert, who will also take care of applying for your government incentives at no cost to you – Speak to an FHBA Coach for free!
First Home Buyers Australia