The latest state to scrap stamp duty for first-home buyers

First-home buyers previously received a 50% stamp duty discount in Tasmania, however the government promised to remove stamp duty for first-time buyers purchasing any home valued up to $750,000 if they were re-elected.  

Anyone who has bought an existing home valued up to $750,000 since 18 February this year will be eligible for the new stamp duty discount, which will run until mid-2026. 

It comes as the Rockliff Liberal government was sworn into power last week after the March state election delivered a hung parliament and forced the major parties into weeks of negotiations with crossbenchers.  

Mr Rockliff said stamp duty remained one of the biggest costs that home buyers were hit with when buying a home, especially first-home buyers. 

“This is why we are going to make it easier for young Tasmanians to own their first home by stamping out stamp duty,” Mr Rockliff said. 

“In doing so we will make it easier for around 1,500 Tasmanian families a year to find their way into secure home ownership via huge savings of up to $28,945.” 

Tasmanian Premier Jeremy Rockliff says the new stamp duty cut will help about 1,500 Tasmanian families a year. Picture: Michael Willson/Getty

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The government still needs to pass new laws to legislate the stamp duty changes.

Stamp duty cut to boost confidence  

Real estate agents say the stamp duty cuts will help stimulate confidence in Tasmania’s property market, where home prices have been relatively flat over the past year.

Hobart home prices declined 1.65% to $662,000 during the year to March, while the rest of Tasmania saw home prices rise 1.02% to $501,000, according to PropTrack’s latest Home Price Index. 

Real estate agent and director at Raine and Horne Eastern Shore, Matt Carne, told realestate.com.au the state’s property market had been a little bit slower due to the higher interest rate environment. 

“But anecdotally we’ve been seeing more open home attendees over the past few weeks and there seems to be a bit more optimism that’s likely because of the recent interest rate pauses,” Mr Carne said.

“There’s more stock on the market at the moment and buyers have greater freedom of choice, so it’s levelled the playing field a little bit from where it was two years ago. 

“[The stamp duty measures] will enable first-home buyers to act a little sooner than they ordinarily would have,” he said.  

Tony Dion, senior property representative at Petrusma Property, said the stamp duty cut may help create more competition among buyers.  

“It will certainly provide confidence for first-home buyers and help them make a start in their lives,” Mr Dion said.  

"The savvy first-home buyers will come in early and just bite the bullet.”  

Tasmanian first-home buyers will pocket up to $28,945 in stamp duty savings under the new changes, according to government estimates. Picture: Getty

“It will definitely help with confidence in the market, it certainly can't hurt.” 

Australia's growing stamp duty burden  

States and territories have different stamp duty concession rates for first-home buyers across the country.

For example, NSW offers a full stamp duty exemption to first-home buyers for homes valued up to $800,000, and then concessional discounts on homes worth between $800,000 and $1 million.  

It comes as recent PropTrack-e61 Institute research found that stamp duty costs have grown at least fourfold for median-priced homes in Australia’s capital cities compared to average incomes since the early 1980s. 

Hobart home prices declined 1.65% to $662,000 during the year to March 2024. Picture: Getty

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PropTrack senior economist Angus Moore said stamp duty was very costly and acted as a barrier to entry for many first-home buyers.  

“Stamp duty is an inefficient tax because it discourages people from moving to homes that suit them,” Mr Moore said.  

“While the rise has largely been incidental, rather than an intentional increase in tax rates, stamp duty reform is critically needed to allow the property market to operate more efficiently.”  

About 8,000 Tasmanians have used the existing 50% stamp duty discount to buy their first home over the past six years, according to government figures.