What First Time Home Buyer Grants are available in Tasmania?

Looking to buy your first home in Tasmania? You’re in luck because the first homeowner’s grant in Tassie is one of the most generous in the country.

Rising real estate prices may make it harder for first-time home buyers to enter the market. But, there are government grants that can provide the money you need to get into your own home sooner.

Find out how the Tassie First Time Home Owner Grant can help you.


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How much is the First Home Owner Grant in Tasmania?

Until June 30, 2023, the Tasmanian First Home Owner Grant is offering first-time home buyers $30,000 who buy or build a new home. A new dwelling is a dwelling that has not been previously occupied or sold as a place of residence. The grant is not available for established households.

Of all the states and territories, Tasmania offers the highest grant.

Just like in the Northern Territory, there is no price limit on the value of your first home to be eligible for the First Home Owners Grant in Tasmania. Similarly, income also does not affect your eligibility for the grant, which means anyone can apply.

First-Time Owner Grant Eligibility

All grant applicants must meet the following eligibility criteria:

  • Be at least 18 years old

  • At least one candidate must be an Australian citizen or permanent resident

  • Occupy the home as your primary place of residence for a continuous period of at least six months beginning within 12 months of a qualifying transaction

  • You or your partner must not have owned residential property in Australia before July 1, 2000

  • You or your partner must not have owned and occupied residential property for more than six months in Australia after July 1, 2000

  • You or your partner must not have received the first home buyers’ bonus before

How do I apply for a First Time Home Buyer Grant in Tasmania?

To apply for the First Home Owner Grant, you can submit an application through an approved agent (your lender or mortgage broker) or, you can submit your own application through the Tasmanian State Revenue Office.

When is the grant paid?

If the application is made through the State Revenue Office, the grant will be paid after the qualifying transaction is completed. Advance payment may be authorized by the Commissioner if deemed appropriate.

If your file has been submitted by an approved agent (usually the lender with whom you are financing), payment will be made when:

Can first time home buyers benefit from stamp duty reductions in Tasmania?

Receiving stamp duty reductions in Tassie depends on the type of house you actually buy.

If you are buying or building a new home, you are eligible for the First-Time Homeowner’s Grant, but you are not eligible for stamp duty reductions.

On the other hand, if you are buying an established home, you may qualify for stamp duty savings, but you are not eligible for the first-time homeowner’s grant.

First-time home buyers who choose to purchase an established home valued at $600,000 or less can qualify for a 50% reduction in stamp duty. To qualify, the buyer must occupy the home as their principal place of residence for a continuous period of six months, beginning within 12 months of the transfer. Also, if you’re buying as a couple, both parties must be first-time buyers to receive the concession.

This concession is due to end on June 30, 2023.

What other TAS programs and grants can first-time home buyers use?

The First Home Regional Guarantee

The Regional Home Buyers Guarantee Scheme is designed to target first-time home buyers in regional Australia.

With the Regional First Home Guarantee, 10,000 guarantees each year will help first-time home buyers purchase a regional home with as little as 5% loan deposit without having to pay IMT. This means you can borrow up to 95% of the value of the property, with the federal government offering the lender a guarantee of up to 15%.

The Family Home Guarantee

The Family Home Guarantee allows single parents to obtain a home loan with only 2% down payment (via a government guarantee of up to 18%). Launching July 1, 2021, 5,000 places will be available each fiscal year through June 2025. Entrants must be a first-time home buyer, with a maximum income of $125,000. The loan must be repaid through principal and interest repayments and cannot exceed 30 years.

The first super savings program for the home

The First Home Super Saver Scheme (FHSS) helps first-time home buyers save a down payment by using the tax deductions superannuation can provide. Essentially, it allows early earner savers to sacrifice up to $15,000 per year for the plan at a reduced tax rate of just 15% (instead of their marginal tax rate).

When you’re ready to buy a home, up to $50,000 can be released from the plan (plus any income).

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Disclaimer

The whole market has not been taken into account in the selection of the above products. Instead, a reduced portion of the market was considered. Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, Savings Media Group is associated with Firstmac Group. To learn how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.

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