Tasmanian Budget Lets First Home Buyer Stamp Duty Exemption Lapse, Sets Grant at $20,000

Tasmania’s full stamp duty exemption for first home buyers of established homes will end on 30 June 2026. Treasurer Eric Abetz’s 2026–27 state budget, handed down on 21 May, does not extend it.

Since February 2024, eligible first home buyers have paid no transfer duty on existing homes valued up to $750,000, saving up to about $28,900. Budget papers show the exemption cost $60.8 million in the 2025–26 financial year. Under the normal rules, buyers who settle after 30 June will pay standard stamp duty rates.

A smaller grant for new homes

Support for buyers of new homes continues at a lower level. The First Home Owner Grant was tripled to $30,000 for newly built homes under legislation that passed parliament in December 2025. It was due to fall back to its legislated base of $10,000 after 30 June. The budget instead sets it at $20,000 from 1 July, at a cost of $7.8 million next financial year and $3.1 million the year after.

“Owning your first home is a major milestone, and the grant will make a real difference for Tasmanians trying to enter the market,” Mr Abetz said ahead of the budget. He said the measure would also stimulate new housing supply and support jobs in the building industry.

The Housing Industry Association had asked for a $50,000 grant. Its Tasmanian executive director, Benjamin Price, said the uplift was “really welcomed” and that the temporary $30,000 grant had helped many Tasmanians bring forward decisions to build. Industry representatives told Pulse Tasmania that homes in Tasmania take about 12 months to build on average, compared with about four months on the mainland.

A tighter budget

The housing changes come in a budget focused on repairing the state’s finances. Pulse Tasmania reported an operating deficit of $596.7 million for 2026–27, about 1,700 public sector job cuts and net debt peaking at $9.98 billion in mid-2029. The government introduced no new taxes and listed $650 million in cost-of-living relief, including the continuation of free public transport.

A deadline for buyers

The government says its “stamping out stamp duty” policy has helped more than 6,000 Tasmanians into their own homes. Mortgage brokers had expected some form of support to continue. In January, Tasmanian broker Jonathon Coleman told the ABC he would find it “very surprising” if the incentives ended completely, while Mr Abetz said he would not predict what the May budget would contain.

Now that the end date is confirmed, timing matters. Finance broker Tameeka Lynch told Yahoo Finance that buyers who fail to settle by 30 June could face a large extra cost. She also warned that the change could widen the gap between those who can and cannot afford to buy.

Other assistance remains. The state’s MyHome shared equity scheme lets eligible first home buyers purchase with a 2% deposit, with Homes Tasmania as co-owner, subject to value caps of $800,000 for new builds and $750,000 for existing homes.

• Established homes up to $750,000: duty exemption ends for settlements after 30 June 2026.
• New homes: First Home Owner Grant of $20,000 from 1 July 2026.
• Shared equity: MyHome remains available with a 2% deposit.