Tasmanian Liberals promise to halve stamp duty for first-home buyers

The offer is only open to purchases of established homes up to $400,000 which Premier Will Hodgman believed would create a saving of up to $7000 in stamp duty costs.

Property transfer duty is $13,997 on a home valued at $400,000.

The policy aligns with the party’s stated target of keeping Tasmanian home ownership rates at five per cent above the national average.

The policy will be enacted on settlements after February 7 if the Liberals are re-elected.

It is expected to cost the state budget $8 million in revenue.

Property Council of Australia state executive director Brian Wightman said stamp duty increased the cost of doing business, decreased competitiveness.

“In almost every review of taxation conducted throughout Australia, stamp duty has been recognised as the most inefficient of all taxes,” he said.

Mr Wightman said the tax, in particular, made new residential developments less affordable than existing housing.

He said the state body had encouraged political parties to consider further incentives which would lead to inner-city residential infill, equal to the same value of the $20,000 First Home Builder’s Grant.

Real Estate Institute of Tasmania president Tony Collidge said lobbying by the organisation appeared to have paid off.

“Eight-per-cent of purchasers are local people so it will help Tasmanians get into the marketplace,” he said.

“It’s not going to have an impact on housing prices, it will just help people get into homes sooner.

“The only concern is whether we have enough stock being there to buy.”

Housing Industry Association state executive director Rick Sassin said he hoped the incentive would be extended to purchasers of new homes.

“We’d like to see the government completely review stamp duty and consider getting rid of it completely,” he said.

Mr Sassin said at present, new homebuilders only had to pay stamp duties on the cost of land.