First-time home buyers in Tasmania can rejoice—they’ve just gotten a little leg up to help them get their foot in the literal door… the door of their very first home. A recent government initiative aimed at making home ownership more affordable has announced that stamp duty would be removed for first-home buyers purchasing properties for less than $750,000.

What is Stamp Duty?

Before we go any further, it’s probably worth first clarifying exactly what is being discounted. At 4one4, we often come across first-time home buyers who have accounted for the expense of stamp duty simply because they don’t know what it really is. So let’s try and help explain—

Stamp duty is a government tax imposed on the purchase of property or land. This tax is calculated as a percentage of the property’s purchase price and must be paid by the buyer at the time of the transaction. The amount of stamp duty varies depending on the property’s value and location, with higher-valued properties attracting higher stamp duty fees. The revenue from stamp duty is used to fund various public services and infrastructure projects.

Key Highlights of the New Measures

Stamp Duty Removal for Properties Under $750,000

In a major boost for first-home buyers, the Liberal government announced during the state election that stamp duty would be completely removed for those purchasing properties valued at less than $750,000. This policy shift represents significant financial relief, making the dream of homeownership more accessible. First-home buyers previously received a 50% discount on their stamp duty, but the government promised to remove their stamp duty altogether if elected.

The Premier described the legislation as a critical component of his government’s 100-day plan to deliver its 2030 Strong Plan for Tasmania’s Future. Along with the removal of stamp duty for first-time home buyers, it was also announced that buyers of apartments or off-the-plan properties will benefit from a 50% reduction in stamp duty costs. For instance, an apartment in Sandy Bay valued at $730,000 would incur a stamp duty of $14,018 instead of the standard $28,035, offering substantial savings.

Deep Diving into Savings in Our Backyard

Let’s put this calculator to the test, shall we? Let’s have a look in our very own backyard and find out exactly what a first-time home buyer could save.

The median price for a home in Glenorchy as of May 2024 is $555,000, which when plugged into the Stamp Duty Calculator provides a saving of $20,585—a considerable amount that can be redirected to other expenses like renovations or furnishings.

Brighton’s median is sitting at $600,000, which spits out a saving of $22,498; and Moonah’s median house price is $625,000, providing the first home purchaser a handy $23,560 in savings.

Backdated Benefits a Bonus

Bought a house in the past few months and feel ripped off that you just missed out on the savings? Fear not…Treasurer Michael Ferguson announced that these stamp duty discounts would be backdated to February 18, allowing early buyers to benefit retrospectively. Treasurer Michael Ferguson said that under the new plan, eligible Tasmanians buying their first home wouldn’t have to pay a cent of stamp duty for a home valued up to $750,000.

“I can recall the sense of stability and satisfaction that my first home afforded me, and I want to deliver that same sense of security to more Tasmanians statewide,” he said.

“Our ‘Stamping Out Stamp Duty Plan’ is for existing houses, units, and apartments, and will begin immediately for two years until June 30, 2026, and will then be reviewed subject to prevailing market and economic conditions,” he added.

Additional Benefits and Context

According to a recent report by realestate.com.au, Tasmania’s move to scrap stamp duty for first-home buyers aligns with broader national trends, as more states aim to make housing more accessible. This reform is expected to stimulate the housing market by encouraging young buyers to invest in property sooner.

The reforms also offer broader economic benefits. They extar strain to work out the perfect side hustle may not be quite as essential as was previously thought by young Tasmanians; By reducing the upfront costs associated with buying a home, the policy helps to alleviate financial stress and allows buyers to allocate more funds towards other investments, such as home improvements and local services. This increased spending can have a positive ripple effect on the local economy.

We think these stamp duty reforms represent a positive step towards making homeownership more attainable for first-time buyers in Tasmania. The introduction of the online calculator further empowers buyers to make informed decisions, ensuring that the dream of owning a home is within reach for many more Tasmanians.

Click below to see how much you could potentially save.