Growing our Housing Supply

QUICK FACTS
  • 50 per cent stamp duty rebate for any off-plan purchases
  • Incentive grant of $10,000 per unit to get medium density development out of the ground.
  • Key worker homes built in our regions.
  • Widening eligibility for MyHome.

Under our 2030 Strong Plan for Tasmania’s Future, a re-elected majority Liberal Government will:

  • Deliver a new $35 million Homes Faster! Partnership incentive fund to stimulate supply over the next two years.
  • Support Tasmanians to purchase medium density units and apartments with new incentives.
  • Support financing costs through no-interest loans for headworks charges to stimulate investment.
  • Unlock more residential lots with an increase in our residential land rebate.
  • Continue to expand MyHome shared equity scheme to help people buy their first home with just a two per cent deposit.
  • Require all councils to adopt the PlanBuild portal by 2027, making it easier to get planning and building approvals to get construction started faster.

An important part of our 2030 Strong Plan for Tasmania's Future is to help more Tasmanians realise their home ownership dream.

Creating $35 million Homes Faster! Partnership Incentive Fund with new incentives for Tasmanian home purchasers, landowners and developers to stimulate supply

In recent years, Tasmania has experienced a substantial surge in housing demand, primarily driven by a strong economy, job growth and an increase in population. A significant pipeline of new supply will reduce housing pressure for all Tasmanians.

The evidence points to the need to incentivise medium-density development projects - subdivision, infill and strata-type projects. With the right incentives, in partnership with the private sector, we can unlock more investment to deliver a pipeline of new housing supply, especially in medium-density building projects.

The creation of a new partnership fund will fund multiple initiatives to stimulate medium-density projects for more apartment living, affordable housing and key worker initiatives.

Incentives will include the already established Residential Land Rebate program, a key worker housing rebate program, interest-free loan options for developers or councils, a pilot for a new shared equity program for councils to develop key worker developments, and rebates to incentivise Tasmanians to purchase apartments within a multi-storey apartment complex together with new incentives for developers to build them.

A re-elected majority Liberal Government will create a new capped $35 million Homes Faster! Partnership Incentive Fund with a range of new incentives for Tasmanian home purchasers, landowners and developers to fund private sector and industry partnership initiatives to stimulate a significant pipeline of new supply, and to further encourage Tasmanians to build or purchase new homes.

More support for Tasmanians to purchase medium density units and apartments with new incentives

Purchasing off-plan 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 this type of positive consumer purchasing behaviour.

A re-elected majority Liberal Government will provide incentives for Tasmanians to purchase apartments off-plan. Purchasing properties off-plan assists development projects get out of the ground. Culturally, Tasmanians don’t purchase off-plan and the Tasmanian Liberals will look to shift this behaviour by providing incentives through rebates and concessions.

To support positive development investor decisions and to provide a cash incentive for Tasmanians to take up unit/apartment living more readily, a re-elected majority Liberal Government will introduce a new Apartment Incentive Rebate scheme with a 50 per cent discount on stamp duty to Tasmanians who purchase a new medium-density apartment or unit up to the value of $750,000.

The rebate will be paid after the purchase has been settled, and the home can be for residence or for investment.

Delivering a new $10 million density incentive grant scheme for infill developments

A re-elected majority Liberal Government will provide a new density incentive grant for developers of $10,000 per unit to build brand new infill medium or high-density developments (to a maximum of 50 units).

Connections with transport and local services and unit size will form part of the scheme’s guidelines to ensure that these developments are in the right places. This is to be consistent with the residential rebate program but also provides for strata developments that are not covered by the land program.

Supporting financing costs through no-interest loans for headworks charges to stimulate investment

A re-elected majority Liberal Government will provide short-term interest-free loans, up to $1 million, for medium density unit/apartment development projects to assist with early headworks charges. The loan facility is repayable within six months of practical completion, enabling repayment at a time when the project is achieving positive cash flows.

Bringing more affordable residential land to market

A re-elected majority Liberal Government will enhance the existing residential land rebate program, offering eligible applicants a rebate of actual costs incurred up to a total of $15,000 per lot, to a maximum of 40 lots.

Eligible utilities are defined as water and sewerage infrastructure, power infrastructure, and NBN/internet network costs that have not been previously covered. An affordable land cost cap per lot will be determined in the eligibility criteria. This will bring forward at least another 667 lots to market over the next two years.

Homes Tasmania Guaranteed 10% Purchase Initiative

We will provide immediate incentives to bring forward several larger residential apartment developments (minimum 25 units) by Homes Tasmania guaranteeing the purchase of 10 per cent of units off plan to be managed as affordable rental housing. At least one approved project in each of the three regions in Tasmania will be included under this initiative, subject to approvals and commercially-agreed terms.

Consistency in planning for new homes

The Tasmanian Liberals introduced Australia’s first State-wide planning scheme - a single set of planning rules applied consistently across Tasmania, providing consistency and transparency for all users.

A re-elected majority Liberal Government will ensure consistency in development by removing duplication of heritage considerations and processes. We will ensure that all applications are assessed only once and against the same rules, consistent with our Tasmanian Planning Scheme.

Delivering more key worker accommodation to grow Tasmanian regional economies: KeyHomes

Local councils have expressed their desire to see more key worker accommodation developed in their regional areas, to support local businesses and industry. In particular, businesses in tourism and hospitality, aquaculture, mining, agricultural and health sectors in many regions across Tasmania.

KeyHomes would be a new initiative to support local government to build a range of agreed housing options on local council land for the specific purpose of attracting workers and professionals to regional areas, on the provision that the build includes local tradespeople and training opportunities for local jobseekers.

We will work with councils to secure finance in a similar way we approach MyHome with 40% Homes Tasmania equity to provide key worker homes on agreed council land with the Council as purchaser/developer, and acceptance criteria would be based on location and using Tasmanian trades and suppliers.

A re-elected majority Liberal Government will task Homes Tasmania to work with lenders and an interested council to investigate and develop a pilot KeyHomes proposal for review by Government by the end of 2024.

Enhancing our successful MyHome Shared Equity Scheme

The MyHome program is a home ownership assistance program that helps lower income Tasmanians purchase or build a home.

It does this by Homes Tasmania sharing the costs of buying the home - sharing the equity - reducing the deposit required and mortgage repayments. Partnering through the Bank Of Us, it has already delivered homes to over 300 Tasmanians in the past 12 months.

A re-elected majority Liberal Government will continue the MyHome program with additional enhancements to provide home ownership opportunities to even more Tasmanians and support for new home construction:

  • An increase to the maximum shared equity from $200,000 to $300,000 or 40 per cent (whichever is the lesser amount) of the purchase price for purchasers of new homes or house and land packages; and
  • Lifting the income limits by 25 per cent for co-owners to qualify for new construction: currently $107,580 combined, to $134, 475 (an increase of $26,895).

Net Cost: $35 million