First home buyer Tasmania: the $20,000 grant, stamp duty now, and the 5% Deposit Scheme

What do first home buyers get in Tasmania?

Tasmanian first home buyers can get the state's $20,000 First Home Owner Grant on a new home, and three federal schemes: the 5% Deposit Scheme, Help to Buy and the First Home Super Saver Scheme [1][5][6][7]. What they can't get any more is the state's stamp duty exemption on an established home, which has ended [2].

Each piece has its own rules, and you can qualify for one without the others. The grant is cash toward a new home. The 5% Deposit Scheme doesn't give you money: it lets you buy with a smaller deposit without paying lenders mortgage insurance (LMI), the insurance a lender charges you for when you borrow more than 80% of the price. Help to Buy has the government put money in beside you, and the Super Saver lets you save part of your deposit inside your super.

What this means for you: on an established home, the grant doesn't apply and there's no duty relief, so the federal schemes are where the help is. On a new home, the grant and a federal scheme can work together.

How much is the first home owner grant in Tasmania?

The Tasmanian First Home Owner Grant is $20,000 for a first home buyer who builds or buys a new home [1]. It's run by the State Revenue Office of Tasmania, the state agency that also collects stamp duty. It's a grant, not a loan, and it comes with conditions on who you are and on living in the home (part 6).

The amount isn't fixed for good. The State Revenue Office sets it by your transaction's commencement date, the date your transaction started, not the date you settle [1]. So two buyers settling in the same month can get different amounts.

Why do some pages still say the Tasmanian grant is $30,000?

Because it was $30,000 in the period just before the current one, and that figure still circulates. The State Revenue Office's own table shows four amounts across recent periods, each set by when the transaction started [1].

What this means for you: if you signed a contract to build, or your build started, in an earlier period, your amount may differ from today's $20,000. The State Revenue Office's grant guideline sets the exact rules for when a transaction starts, so check your own date against it before you count on a figure.

Can you get the Tasmanian grant on an established home?

No. The Tasmanian grant is for a new home: a contract to build, a home whose foundations are being laid, or a home bought off the plan, and the building must be completed within 24 months [1]. Buy an established home and there's no grant, whatever the price.

Until recently, Tasmania's help ran the other way for established homes, through a stamp duty exemption (part 8). That has ended, so a first buyer of an established home now gets no state help at all.

What this means for you: in Tasmania, choosing new over established is now worth the $20,000 grant. Price, location and the build timeline still matter more for some buyers, so weigh the grant against the home, not on its own.

Is there a price cap on the first home owner grant in Tasmania?

The State Revenue Office's eligibility page for the Tasmanian grant states no value cap on the home [1]. That's the page's own wording, so if your build is at the top end, confirm it against the grant guideline before you rely on it.

The federal 5% Deposit Scheme has its own cap: $700,000 in Hobart and $550,000 in the rest of Tasmania (part 14). If you use both, the scheme's cap is the one that limits your price.

Do first home buyers pay stamp duty in Tasmania?

Yes. Tasmanian first home buyers now pay stamp duty, called property transfer duty, at the same general rates as everyone else [2][4]. The 100% exemption that first buyers of established homes used to get is not available for transactions settling after its end date [2].

On a $600,000 home, that's $22,497.50 of duty [4][9]. It's charged on the greater of the price and the property's unencumbered value, and your conveyancer confirms the figure on your contract.

What happened to the Tasmanian stamp duty exemption for first home buyers?

Tasmania's stamp duty exemption for first home buyers covered established homes with a dutiable value of $750,000 or less, and it has ended. The State Revenue Office says the 100% duty exemption is not available for transactions settling after its end date [2].

Its pages name no replacement [2][3]. The State Revenue Office's first home owner page still shows the exemption's window, which is why you'll still read about it [3]. Read the dates on any page that says first home buyers pay no duty in Tasmania.

What this means for you: on a $750,000 established home, the exemption was worth $28,935 in duty [4][9]. A buyer who planned around it now needs that much more in cash, or a lower price.

How much is stamp duty in Tasmania on a first home?

Stamp duty on a Tasmanian first home is worked out from the State Revenue Office's general rates, the same as for any buyer [4]. The table shows the duty at each price, and what a first buyer of an established home paid under the old exemption [2][9].

For any other price, use the stamp duty calculator.

How is stamp duty worked out in Tasmania?

Tasmanian stamp duty is worked out in bands. For most first homes, two bands matter: one up to $725,000 and one above it [4].

Between $375,000 and $725,000, each extra $10,000 of price adds $425 of duty. Above $725,000, each extra $10,000 adds $450 [4][9]. Duty is counted per $100, or part of $100, so a price a few dollars over a round number pays duty on the next $100 [4].

What this means for you: there's no cliff in Tasmanian duty, just two steady rates. Negotiating $20,000 off a $600,000 home saves $850 of duty on top of the $20,000 [4][9].

Can stamp duty be added to your home loan in Tasmania?

That depends on the lender and the loan, so check it before you count on it. Plan on having the duty in cash on settlement day, on top of your deposit.

This is where the 5% Deposit Scheme helps even when there's no state duty relief. A smaller deposit leaves more of your savings free for the duty. The scheme counts your savings after purchase costs such as stamp duty, so money set aside for duty doesn't push you over its 20% ceiling (part 13) [5].

Is there any stamp duty concession for first home buyers in Tasmania now?

Not on the State Revenue Office's pages. They say the established-home exemption has ended and name no replacement [2][3].

So in Tasmania the help a first buyer can still use is the grant on a new home and the federal schemes. If a new concession is announced, its terms will be on the State Revenue Office's site, and we check it against your contract.

Can first home buyers in Tasmania avoid LMI?

Yes, through the federal 5% Deposit Scheme. It lets a Tasmanian first home buyer buy with a 5% deposit and no lenders mortgage insurance, because Housing Australia, a government agency, guarantees the lender in place of the insurance [5]. Single parents and legal guardians can buy from a 2% deposit [5].

The scheme has no income cap and no waitlist [5]. It has a ceiling as well as a floor: if you have 20% or more saved after purchase costs such as stamp duty and legal fees, you can't use it [5]. On a $600,000 home, that's $120,000 or more left after those costs [9]. Moving savings to someone else to get under the line is named as against the scheme's intent [5].

Here's what LMI would cost on a 95% loan for a first home buyer, from one insurer's published rate card [8]. Under the scheme, that cost isn't charged. These are illustrations from one card, not quotes; your premium depends on the insurer, the loan and the lender.

Some lenders also waive LMI for certain professions. See LMI waivers.

What are the 5% Deposit Scheme price caps in Hobart and the rest of Tasmania?

The 5% Deposit Scheme's Tasmanian price cap is $700,000 in Hobart and $550,000 everywhere else in the state [5]. Both the price you pay and the lender's valuation have to be at or under the cap, and for vacant land with a separate build contract, the land and the build together must stay under it [5].

Housing Australia's list of regional centres that share the capital-city cap names places in New South Wales, Victoria and Queensland only, and none in Tasmania [5]. So outside Hobart, plan on the $550,000 cap, and check your address on Housing Australia's price cap page before you rely on a higher figure.

What this means for you: outside Hobart, the scheme's cap is the tightest limit on the page. A home that's right for you at $560,000 is outside it, and that $10,000 can be the difference between paying LMI and not.

Who counts as a first home buyer in Tasmania? Three different tests

There isn't one definition of a first home buyer in Tasmania. The grant, the 5% Deposit Scheme and the First Home Super Saver Scheme each ask a different question about what you've owned before.

What this means for you: passing one test tells you nothing about the others. A buyer who owned an investment unit and never lived in it may still pass the grant's lived-in test, yet fail the deposit scheme's 10-year test and the super saver's never-owned test. That's why we check every test against your history before you sign.

I owned a home overseas. Am I a first home buyer in Tasmania?

Each of the three tests on our record is worded about property in Australia: the grant's test, the 5% Deposit Scheme's 10-year test and the super saver's never-owned test [1][5][7].

Tasmania has no first home duty concession now, so there's no duty test to pass either way (part 12). If you owned a home abroad, ask before you rely on any one test, and we'll check your history against each scheme's own words.

How does Help to Buy work in Tasmania?

Help to Buy is shared equity: the Australian Government contributes up to 30% of the price of an existing home, or up to 40% of a new one, and you buy with a deposit from 2% [6]. You own the home and share some of its value with the government [6].

There are 10,000 places a year, and the current income limits are $103,000 for a single and $165,000 for joint applicants or a single parent [6]. All applicants must be Australian citizens, and the home must be at or under the price cap for its location, which the government's own tool shows [6]. See Help to Buy.

Can you use your super to buy a first home in Tasmania?

Yes, through the First Home Super Saver Scheme. You put voluntary contributions into your super, up to $15,000 a year and $50,000 in total, then ask the Australian Taxation Office to release them toward your first home [7].

You get back all of your after-tax contributions and 85% of the before-tax (concessional) ones, with deemed earnings worked out at a rate the ATO sets, not what your fund actually earned [7]. What's released is taxed at your rate less a 30% offset [7].

The order matters: you ask the ATO for a determination before the property is transferred to you, and you can ask for the release up to 90 days after you sign a contract [7]. After a release you have 12 months to sign, which the ATO can extend by up to another 12 [7]. See First Home Super Saver.

Can you get the Tasmanian grant and a federal scheme together?

Mostly, yes. The 5% Deposit Scheme's guide says using it doesn't stop you getting other state or territory help [5], so on a new home within the scheme's cap, the $20,000 grant and the scheme can apply to the same purchase. Help to Buy says grants and duty concessions still apply [6].

The firm exclusion: the 5% Deposit Scheme and Help to Buy can't be used together [5]. Help to Buy also rules out state shared equity schemes, loans and guarantees [6].

What is the whole package worth on a Tasmanian home?

An illustration, not a client file. A first home buyer pays $600,000 for a newly built home in Hobart. The grant is $20,000. Through the 5% Deposit Scheme, a $30,000 deposit is enough, and the price is under the $700,000 Hobart cap. On the same 95% loan, one insurer's card puts LMI at about $19,152, which the scheme means isn't charged [1][5][8][9].

That's about $39,152 of help. Against it, the buyer pays $22,497.50 in stamp duty, so the cash needed for the deposit and duty is $52,497.50, before legal and other costs [4][9].

Buy a $500,000 new home outside Hobart instead and it sits under the $550,000 cap. The grant is still $20,000, the deposit $25,000, the LMI avoided about $15,960, and the duty $18,247.50 [4][5][8][9].

Buy an established home at either price and the grant falls away. The 5% Deposit Scheme still saves the insurance, and the duty is the same. See how the schemes fit together.

Can the Tasmanian grant go towards your deposit?

Usually not at the time you need it. The grant is usually paid at settlement, or at the first progress payment on a build, so it can't pay the deposit you hand over when you sign, or the duty.

Plan your deposit and your duty from your own savings, and treat the grant as money that arrives later.

When to apply, and when the money arrives

**Check every condition before you sign.** The grant and each federal scheme have their own test, and the grant amount depends on when your transaction starts [1].

**Get pre-approval first.** Under the 5% Deposit Scheme, pre-approval gives you 90 days to find a home and sign a contract [5].

**Apply for the grant** through the State Revenue Office, or through your lender if it's an approved agent.

**Budget the duty for settlement day.** Your conveyancer confirms the figure on your contract.

**Move in on time.** Within 12 months of completion for the grant, and within 6 months of settlement for the 5% Deposit Scheme (part 23).

How long do you have to live in the home?

Each scheme sets its own rule, and the strictest one you use is the one that counts.

What this means for you: if you use the 5% Deposit Scheme, plan to move in within 6 months of settlement, not the year the grant allows, and don't plan to rent the home out while the guarantee is in place [5].

Buying with a partner, a friend or family

For the Tasmanian grant, your spouse's past ownership counts, so a partner who owned a home before can rule you both out [1].

The 5% Deposit Scheme takes exactly two people on a joint application, and they don't have to be a couple: partners, friends or family members. Both must pass every test, and three or more buyers can't use it [5]. The First Home Super Saver works person by person, so a couple can each use their own savings for the same home [7].

A parent can help in another way, by putting up part of their home's equity as security. See guarantor home loans.

Do you need to be a citizen to get first home buyer help in Tasmania?

It depends on the scheme. Three of the four ask for citizenship, and two of those also accept permanent residents.

If you're on a visa, see home loans for visa holders.

Building a new home or buying off the plan in Tasmania

A new build is where the Tasmanian grant lives. It covers a contract to build, a home whose foundations are being laid, or an off-the-plan home, and the building must be completed within 24 months [1].

Under the 5% Deposit Scheme, the building contract must be signed within 6 months of the loan settling, building must start within 12 months and finish within 36 months, and you move in within 6 months of the occupancy certificate [5]. Owner-builder contracts don't qualify; the builder must be licensed, insured and on a fixed-price contract [5].

Two traps: the land has to be titled before the guarantee can be issued, inside the 90-day pre-approval window, and if you already own the vacant land, you can't use the scheme to build on it [5]. See construction loans.

What happens after you buy with the 5% Deposit Scheme?

The guarantee stays until your loan falls to 80% of the property's value, measured on your scheduled repayments; extra repayments you can redraw don't count toward it [5].

While it's in place you can't increase the loan, so there's no topping up for a renovation, and the home can't be rented out [5]. You can change rate or product with the same lender, and you can refinance to another lender on the scheme's panel and keep the guarantee; move to a lender off the panel and the guarantee is lost [5].

How much can a first home buyer borrow in Tasmania?

What you can borrow comes from your income, your debts and your living costs, and each lender works it out its own way. The grant and the federal schemes don't change what a lender works out you can repay; they change how much cash you need on the day.

That's why the order matters: work out what lenders will lend you first, then fit the schemes and the duty to the price. See how much can I borrow.

What does a broker cost you?

How a broker is paid, and the rule Money Brain holds against it, is set out in full on its own page: what a mortgage broker costs.

Your first move

You've read the rules. Now there's one question left: on the home you want, at the price you'll pay, what does the grant, the duty and the federal schemes add up to, and how much cash do you need on settlement day?

That depends on new or established, Hobart or the rest of the state, what you've owned and what you've saved, and it's what Money Brain works out before anything goes to a lender.