Buckle up, homeowners, first-time buyers, and property investors—2024 is bringing some exciting changes your way! Announced by the State Revenue Office, Department of Treasury and Finance, these new tax policies are designed to lighten your financial load.
Whether you’re dreaming of your first home, looking to sell and downsize, or expanding your property portfolio, these new measures might be just the boost you need.
We’re giving you a quick rundown of the key changes happening in 2024, but if you’re looking for more detailed information, we’ve included links to the State Government’s official site throughout the article.
Land Tax Reforms in 2024
A Higher Land Tax Threshold—More Savings for You
Good news for property owners! Starting July 1, 2024, the land tax-free threshold is going up—from $99,999 to $124,999. In other words, if your property is valued at $125,000 or less, you won’t have to pay land tax anymore. This change, implemented by the State Revenue Office, benefits small-scale property owners and investors who are looking to expand their portfolios without incurring a land tax liability.
More Time for Exemptions on Newly-Built Homes
If you’ve been thinking about investing in a newly-built home to rent out long-term, now’s the time! The three-year land tax exemption for these properties has been extended until June 30, 2026. Originally implemented to encourage long-term rental housing, this policy extension by the Department of Treasury and Finance offers developers and investors a continued break while helping to ease rental shortages.
Convert Your Airbnb to a Long-Term Rental? Get a Tax Break!
Own a vacation rental? If you’ve been considering turning your Airbnb or short-term rental into a long-term rental, you could score a land tax exemption. The State Revenue Office has extended this exemption, which was initially set for one year, until June 2026. By converting your short-term rental to a long-term one, you not only receive a tax benefit but also contribute to the much-needed supply of affordable housing.
Changes to Property Transfer Dhttps://www.sro.tas.gov.au/property-transfer-duties/concessions-exemptions/off-the-plan-apartment-or-unit-duty-concessionuty
First-Home Buyers: Get Ready for 100% Exemption!
Here’s a major perk if you’re a first-time home buyer: From February 18, 2024, until June 30, 2026, you can enjoy a 100% exemption on property transfer duty for homes valued at up to $750,000! This change, implemented by the State Revenue Office, is a huge leap from the previous 50% exemption. If you’re planning to get on the property ladder, this could save you a significant amount in upfront costs, making your first home a bit more affordable.
Downsizing? Pensioners Get a Nice Break Too!
Pensioners, listen up! If you’re thinking of downsizing—maybe moving to a cozier home or unit—you could benefit from a 50% reduction in property transfer duties. Eligible pensioners, under this policy by the Department of Treasury and Finance, can enjoy this concession on homes priced up to $600,000 until June 2025. This helps pensioners move to more manageable homes while freeing up larger houses for growing families.
Discount on New Apartments or Units
Planning to buy a new apartment or unit? Whether it’s off-the-plan or still under construction, you’ll be eligible for a 50% concession on property transfer duties, thanks to the State Revenue Office’s latest reforms. This deal kicks in on July 1, 2024, and runs until June 30, 2026, for properties valued at up to $750,000. It’s a great way to get into a brand-new home or investment property while saving on upfront transfer duties.
First Home Owner Grant Continues
First-time buyers, there’s more good news! The First Home Owner Grant will still be available in 2024, offering a cool $10,000 to help you get your foot in the door (literally). This grant, administered by the Department of Treasury and Finance, is available for eligible transactions starting from July 1, 2024. Whether you’re buying or building a new home, this financial boost could make all the difference in turning your dream of homeownership into reality.
The Bigger Picture: What Do These Changes Mean?
Great News for Investors and Developers
For property developers and investors, the 2024 reforms by the State Revenue Office offer plenty to smile about. With extended exemptions and concessions, there’s a strong incentive to develop more rental properties. Whether you’re building new homes, converting short-term rentals, or buying off-the-plan apartments, you’ve got tax breaks coming your way. The government is clearly pushing to increase the housing supply, and these reforms make it easier (and cheaper!) for you to get involved.
A Boost for Long-Term Rentals
A major goal behind these tax changes is to promote long-term rental housing. By offering exemptions for converting short-term rentals into long-term ones and extending tax relief on newly-built homes, the government, through the Department of Treasury and Finance, is aiming to address the housing crunch. These policies incentivize property owners to move away from short-term rentals and provide longer-term housing solutions, which could help stabilize rental markets and reduce housing shortages.
Conclusion
The 2024 tax reforms, led by the State Revenue Office and the Department of Treasury and Finance, offer great opportunities for homeowners, investors, and businesses. With exemptions, rebates, and grants available, the government is making it easier to buy, sell, build, or invest in property. Whether you’re planning to downsize, develop, or just step onto the property ladder, these reforms have something for you. Stay informed, mark the dates, and take full advantage of these incentives!
