Tasmania Abolishes Stamp Duty for First Home Buyers of Established Homes up to $750,000

Tasmanian first home buyers purchasing an established house, unit or apartment no longer pay stamp duty on properties with a dutiable value of $750,000 or less, after the state government’s election promise took effect with the start of the 2024–25 financial year.

The exemption replaces a 50% duty concession and lifts the property value cap from $600,000 to $750,000. The government says eligible buyers will save up to $28,900. The measure applies to purchases that settle between 18 February 2024 and 30 June 2026.

Refunds for earlier buyers

Because the policy is retrospective to 18 February 2024, eligible first home buyers who settled on an existing home after that date and paid duty under the old half-price concession will be refunded by the State Revenue Office.

“We have abolished stamp duty for eligible first home buyers on the purchase of an existing home,” Finance Minister Nic Street said in announcing the start of the scheme.

Who qualifies

According to the State Revenue Office, the relief is available to natural persons aged 18 or over who are Australian citizens or permanent residents and have never owned residential property in Australia. Buyers must not have received a First Home Owner Grant or first home duty relief before, and must live in the home as their principal place of residence for a continuous six months, starting within 12 months of the purchase.

• Established homes only: existing houses, units and apartments.
• Dutiable value of $750,000 or less.
• Settlement between 18 February 2024 and 30 June 2026.
• Applications can be lodged before settlement through a conveyancer, or after settlement for a refund.

A campaign promise

The Liberals announced the policy on 18 February 2024, during the state election campaign. At the time, the party said the exemption would help around an extra 1,500 Tasmanian households into the market each year and cost $64.3 million over two years. It was paired with a proposed 5% levy on short-stay accommodation, expected to raise about $11 million a year.

The package drew criticism. Labor’s Dean Winter called the short-stay levy a “shack tax”, and the Greens’ Vica Bayley said the stamp duty changes would not do anything to address the shortage of rental housing. Independent MP Lara Alexander warned the policy could push up home prices and make rental affordability worse.

A smaller grant for new homes

The exemption applies only to established dwellings. On the same day it took effect, the First Home Owner Grant, which applies to new homes, was cut from $30,000 to $10,000, its base legislated level. The $30,000 grant had been in place since April 2021. Your Mortgage reported that buyers of off-the-plan apartments under $750,000 may still receive a 50% duty discount.

The changes shift the state’s support for first home buyers towards the existing housing stock and away from new construction, at a time when Tasmanian values remain below their 2022 peak.

How Tasmania got here

Tasmania has offered first home buyers of established homes a 50% duty concession since 7 February 2018. The value cap was $400,000 at first, rose to $500,000 in March 2021 and to $600,000 from 1 January 2022. The new exemption doubles the discount to 100% and raises the cap by $150,000.

For buyers, the main question is timing. The exemption ends on 30 June 2026 and will then be reviewed, so first home buyers who need the full saving have just under two years to settle.