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 set to revert back from $20,000 to $10,000 in July 2020, 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) However, the grant amount is set to be reduced next year (as covered in the next section) 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. However, it’s set to change considerably in 2020. 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 one additional year as part of the 2019-20 State Budget, from 1 July 2019 to 30 June 2020. 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 2019, 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.
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.