Tasmanian First Home Owner Grant

What Is the First Home Owner Grant in Tasmania?

The Tasmanian First Home Owner Grant (FHOG) is a payment from the state government to help eligible first home buyers purchase or build a new owner-occupied home. Administered by the State Revenue Office of Tasmania (SRO), the amount depends on when the eligible transaction commenced: $20,000 between 1 July 2026 and 30 June 2027, and $30,000 between 1 July 2025 and 30 June 2026.

What makes Tasmania's FHOG particularly attractive is the combination of a generous grant amount and the state's relatively affordable property market. With Hobart's median house price remaining well below the mainland capital cities, the $20,000 grant represents a significant proportion of a typical deposit. On a $400,000 home, the grant alone provides 5% of the purchase price, the minimum deposit under the federal 5% Deposit Scheme.

Tasmania is also unique in that the FHOG does not have a strict property value cap in the same manner as most other states. The key requirement is that the home must be new and owner-occupied. This flexibility, combined with the generous grant amount, makes Tasmania one of the most supportive states for first home buyers in Australia.

TAS FHOG Eligibility Criteria

To qualify for the Tasmanian First Home Owner Grant, you must meet all of the following requirements:

• You must be an Australian citizen or permanent resident (at least one applicant if purchasing jointly)
• You must be aged 18 years or older at the date of the transaction
• You (or your spouse/de facto partner) must not have previously owned residential property in Australia
• You (or your spouse/de facto partner) must not have previously received a first home owner grant in any Australian state or territory
• The home must be a new home, newly built, purchased off the plan, or substantially renovated
• The home must be owner-occupied (you intend to live in it as your principal place of residence)
• You must move into the property within 12 months of completion and live there for at least six continuous months
• The property must be in Tasmania

There is no income test for the Tasmanian FHOG, and the grant applies regardless of your earnings level. This makes the grant accessible to all first home buyers who satisfy the property and ownership criteria.

Property Value: No Specific Cap

One of the distinctive features of the Tasmanian FHOG is the absence of a strict property value cap in the same way other states impose them. The grant is available for new owner-occupied homes across Tasmania, with the primary requirements being that the home is new and that you will live in it as your principal place of residence.

While there is no hard dollar cap preventing higher-value homes from qualifying, the practical reality is that the grant is most impactful for typical first home buyer purchases. In Tasmania's market, new homes and house and land packages are generally available across a wide price range, from under $400,000 in regional areas to $600,000 or more in Hobart's inner suburbs and desirable coastal locations.

This absence of a value cap is a genuine advantage over other states. In NSW, for example, a property valued at $601,000 receives no FHOG at all. In Tasmania, the same property would still qualify for the full grant, provided it is a new home and will be owner-occupied.

New Homes vs Existing Homes in Tasmania

The FHOG in Tasmania is exclusively for new homes. The State Revenue Office defines a new home as:

• A home that has not been previously occupied or sold as a place of residence
• A newly constructed home purchased off the plan
• A substantially renovated home where the renovation is so comprehensive that the result is effectively a new dwelling
• A home built by an owner-builder on their own land

Established (existing) homes that have been previously lived in do not qualify for the FHOG. However, the state duty exemption for first home buyers of established homes ended for transfers settling after 30 June 2026 (see below). Federal schemes such as the 5% Deposit Scheme and the First Home Super Saver scheme are still available to all eligible first home buyers.

It is worth noting that Tasmania's new housing supply is more limited than in larger mainland states. While new developments are increasing, particularly around Hobart's northern suburbs and in Launceston, the supply of new homes is smaller than in fast-growing areas of South-East Queensland or Melbourne's western corridor. This means it is important to start your property search early and be prepared to act when suitable new homes become available.

TAS Stamp Duty and First Home Buyers

SRO Tasmania's duty relief for first home buyers applied to established homes, and it has ended for transfers settling after 30 June 2026.

How the relief changed

• 7 February 2018 to 17 February 2024: a 50% duty concession on established homes under a value cap that rose from $400,000 to $600,000.
• 18 February 2024 to 30 June 2026: a full duty exemption on established homes valued at $750,000 or less.
• From 1 July 2026: the exemption is not available for transactions settling after 30 June 2026.

What that means now

Budget for transfer duty at the standard rates on a Tasmanian first home unless your conveyancer or SRO Tasmania confirms another concession applies to your purchase. On a new home, the FHOG ($20,000 for transactions from 1 July 2026) is the main state support.

How to Apply for the Tasmanian FHOG

There are two ways to apply for the Tasmanian First Home Owner Grant:

Option 1: Through Your Lender (Most Common)

The most straightforward method is to apply through your bank or mortgage broker when you submit your home loan application. Your lender includes the FHOG application forms with your loan documentation, and the grant is credited at settlement. This ensures the grant is available when you need it most, reducing your out-of-pocket settlement costs.

Option 2: Directly with the State Revenue Office

You can apply directly to the SRO of Tasmania within 12 months of settlement or completion of construction. This option is typically used by buyers who paid cash or who did not apply through their lender. You will need to provide proof of identity, your contract of sale or building contract, evidence that the home is new, and a statutory declaration confirming eligibility. Applications can be submitted through the SRO website or by post.

Other First Home Buyer Benefits Available in Tasmania

First Home Guarantee (Federal Scheme)

The 5% Deposit Scheme (formerly the First Home Guarantee) allows eligible first home buyers to purchase with just 5% deposit without paying Lenders Mortgage Insurance. In Tasmania, property price caps are $700,000 for Hobart and $550,000 for the rest of the state. There is no income test; the previous income limits were removed in October 2025. Combined with the TAS FHOG, this scheme can cover most or all of a typical first home deposit.

First Home Super Saver Scheme

The FHSS scheme lets you withdraw up to $50,000 in voluntary super contributions for your first home deposit. Contributions are taxed at just 15% through super, compared to your marginal tax rate in a standard savings account. Combined with the $20,000 FHOG, you could have up to $70,000 in grants and tax-advantaged savings, a significant deposit on a Tasmanian property.

MyHome Shared Equity Scheme

The Tasmanian Government's MyHome scheme provides shared equity assistance to eligible Tasmanians. Under this arrangement, the government takes an equity share of up to 30% in your property, reducing the size of your mortgage and your ongoing repayments. This scheme is particularly aimed at essential workers and lower-income earners who may struggle to secure sufficient financing on their own.

Tips for Maximising Your First Home Buyer Benefits in Tasmania

• Buy a new home for maximum savings: The FHOG, $20,000 for transactions from 1 July 2026, is only for new homes.
• Explore Hobart's northern growth corridor: Areas like Brighton, Gagebrook, Granton, and New Norfolk are seeing new housing developments at price points well suited to first home buyers.
• Consider Launceston and regional centres: Lower property prices in Launceston, Devonport, Burnie, and other regional towns mean the grant has an even greater impact on your purchase.
• Combine all available schemes: Use the FHOG, the 5% Deposit Scheme and the FHSS scheme together for the best possible financial outcome.
• Start early with new home searches: Tasmania's new housing supply is more limited than mainland states, so begin your search early to secure a suitable property.
• Engage a mortgage broker: A broker can help you navigate the combination of state and federal schemes and find the best lender for your situation. The service is free to you.