Tasmania introduces stamp duty concession for apartment buyers

Last week, the Tasmanian government’s Stamping Out Stamp Duty policy passed in the House of Assembly, a policy that would make first home buyers (FHBs) exempt from paying stamp duty if they purchased a property that costs less than $700,000.

The state government announced on Tuesday (18 June) that it will also be reducing stamp duty for those who purchase newly built apartments to 50 per cent if the property is valued at $750,000 or less.

The new legislation, which has passed through the House of Assembly, is available to all buyers (not just FHBs) and can be used if a buyer purchases a newly built apartment or unit off-plan or under construction.

The bill forms part of the Tasmanian government’s 100-day plan and is a “key element” for the state government to grow Tasmania’s housing supply, the government has said.

Michael Ferguson, the acting Minister for Finance, said that the new legislation could save Tasmanian buyers up to $14,468.

The bill is subject to passage through the Legislative Council following the parliamentary winter recess; however, the government said that eligible claims made from 1 July would be honoured if the bill passes.

Ferguson said that the stamp duty concessions are supporting Tasmanians into home ownership.

“Our 2030 Strong Plan for Tasmania’s Future is about taking action of the things that matter to Tasmanians, like housing. This Bill targets all Tasmanians, not just first home buyers, and offers savings of up to $14,468,” Ferguson said.

He also spoke on the benefits of the concession for builders, as it would encourage more buyers into purchasing properties off the plan.

Ferguson said: “Purchasing off-plan also provides important certainty for builders and developers, minimises developers’ risks for large-scale projects, and mitigates against unexpected cost increases for purchasers.

“Investor certainty, and project completion and delivery time is improved by purchasers committing to a development earlier, and doing so encourages a greater number of developments.

“Our Government has always backed in our civil and construction sectors, leading to the creation of thousands of jobs, stimulating our economy, and building more homes for Tasmanians.”

[Related: Tasmanian FHB support passes House of Assembly]