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The Tasmanian Liberal government has announced the passage of its Stamping Out Stamp Duty policy through the House of Assembly on 11 June.
According to Michael Ferguson, acting Minister for Finance, the bill makes changes to the First Home Buyer Duty Concession by increasing the concessions from 50 per cent to 100 per cent, as well as the current dutiable value cap of $600,000 to $700,000.
This now means that first home buyers (FHBs) buying a property of $750,000 or less will not pay stamp duty on their home.
Minister Ferguson said the government’s 2030 Strong Plan for Tasmania’s Future aims to help singles, couples, and families to buy their first home “through a range of measures”.
“The House of Assembly has today passed the Taxation Legislation (Affordable Housing and Employment Support) Bill, taking the first step in ensuring more Tasmanians can buy their first home faster,” he said.
“This exemption applies retrospectively from 18 February 2024, which means any eligible first home buyer who has bought a house since then will get their Stamp Duty returned, providing immediate rebates for hundreds of Tasmanians. The exemption will run for two years.”
Minister Ferguson confirmed that the bill’s support goes beyond just FHBs by also extending the Tasmanian government’s pensioner downsizing concessions, the land tax exemption for newly built homes made available for long-term rental, and the land tax exemption for people returning their short-stay properties to the long-term rental market.
“We are also delivering the Government’s election commitment to raise the land tax tax-free threshold by from $99,999 to $124,999. When we came to office that threshold was set at just $25,000,” Ferguson said.
Additionally, the bill extends the payroll tax rebate scheme for one year (to 30 June 2025) for apprentices, trainees, and youth employees.
This move from the Tasmanian government closely follows the Queensland government announcing reduced costs for FHBs through increasing the concession on the stamp duty threshold.
The Miles government confirmed that the threshold for the first home owner concession on stamp duty has increased by $200,000, from $500,000 to $700,000.
The Queensland government also stated that the concession will then phase out up to values of $800,000.
Along with this, the South Australian government announced that stamp duty has been abolished for FHBs who buy or build a new home as part of the state’s 2024–25 budget.
The South Australian government said the amendments to the state’s stamp duty policy could save FHBs more than $50,000 (including the First Home Owner Grant) if they purchased a property worth $750,000.
[RELATED: Miles government increases FHB stamp duty concessions to $700k]
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