7 Jun, 2019
Despite all the jokes made by mainlanders, the beautiful-yet-isolated state of Tasmania is still part of Australia. This means that when the Howard government introduced the First Home Owners Grant in 2000, it applied to Tassie homes, too!
With the FHOG grant limit of $20,000 extended until June 2022 where it will then revert back to $10,000, there’s no better time than now to buy in Tasmania. But before you dive in, it’s wise to make sure you’re up to speed with all the requirements. Read on for your in-depth guide to the First Home Owners Grant in TAS.
Currently, the Tasmanian government provides a one-off payment of $20,000 for eligible first home buyers and builders (including off-the-plan purchases). Unlike many other states, there are no restrictions around property values to claim the FHOG in TAS.
Yes, the First Home Owners Grant is still available in Tasmania. In the 2018-19 State Budget, the Tasmanian government announced that eligible First Home Owner Grants would be increased from $10,000 to $20,000 for eligible purchases made up to 30 June 2019. This was recently extended for two additional years from 1 July 2019 to 1 June 2022. However, this is subject to passage through parliament, so be sure to check the State Revenue Office website for any updates before you apply.
Unfortunately, applicants for the First Home Owners Grant are not eligible for any stamp duty concessions. However, for established properties purchased between February 2018 and 30 June 2022, Tasmanian first home buyers are eligible for a 50% Stamp Duty reduction for properties valued up to $400,000. This allows them to save a maximum of $7000 in Stamp Duty costs.
To claim the $20,000 AS FHOG payment, there are additional requirements you must meet:
If you are building your home through a registered builder, you must:
If you are building your own home, you must:
If you are purchasing an off-the-plan home, you must:
To ensure your application goes smoothly, you will need to make sure you send all the necessary supporting documents as well as your application form. This includes:
Proof of Identity
If you are applying through an approved agent: One form of documentation from category one, including Australian Passport, Australian birth certificate issued by Registry of Births Deaths and Marriages or Citizenship Certificate
If you are lodging with Service Tasmania: Each applicant and their spouse must provide a document from each of the four categories (four documents per person) This includes:
Category 1: Evidence of Australian citizenship
Category 2: Linkage between identity and the person
Category 3: Evidence of Australian residency
Category 4: Evidence of residential address
Evidence of eligible transaction
Proof of settlement or completion of construction
Purchase of an existing home
Contract to build a new home
The deadlines for applying for the First Home Owner grant TAS depend on the type of property and how you are applying.
If you are applying through an approved agent:
Your approved agent should be able to tell you when the funds will be available and they will be allocated in line with your agreement with them.
If you are applying directly to the Office of State Revenue yourself:
Generally, it takes around 14 days for a FHOG application to be processed and you or your approved agent will be advised of the outcome in writing.
If you’re buying a new home or off the plan, you will receive payment on settlement of the property. If you have a home loan, this will be paid to your lender. If you’re purchasing through a registered builder, you will be paid after the foundations are laid if you’re financing the home or once finished if you’re not. If you’re building your own home, you’ll be paid when you receive an occupancy certificate upon proof of completion or proof of construction.
If you’re not buying a home in Tasmania, then you may be eligible for the First Home Buyer Grant in another state. Be sure to check out our other guides to the FHOG before you apply, as all states have different guidelines.
The most notable change to the First Home Owners Grant in Tasmania is that it has been extended by two years. Those who enter into transactions between the 1 June 2016 and 1 June 2022, could be eligible to receive the $20,000 first home owners grant. After the 1 June 2022, the grant is set to revert back to $10,000. If you do not complete the transaction within this time period, you will only be eligible for the $10,000. However, concessions may be available if you’re able to provide compelling reasons as to why you could not meet this time frame.
If you’re thinking of building a home as well, the Tasmanian government has opened up it’s $20,000 home builders funding to all owner-occupiers. The scheme is set to last for the next six months, and can be used in conjunction with the federal governments $25,000 HomeBuilder grant. If eligible for both schemes, you could gain up to $45,000 to spend on your new home. You can find out more about the HomeBuilder scheme here.
Looking to buy your first property in Tasmania? You may want to consider using one of eChoice’s experienced brokers to assist with your FHOG application and make the process as streamlined as possible. Plus, we also have access to hundreds of mortgage products, so we can help you find a competitive deal that best suits your needs.
An eChoice home loan expert will be in touch with you shortly.