Government makes pitch to first home buyers with stamp duty write-off

Meanwhile, Labor has reaffirmed its commitment to an expanded shared equity scheme and a build-to-rent initiative.

The policy would apply to the purchase of existing houses, apartments and units since February 18, up to the value of $750,000 - saving people up to $28,935.

Prospective home buyer Alex Packer said the impact for him would be "huge", as he and his wife had spent the past four years trying to put enough money away to buy a house.

He said between rising rents and costs of living, and also being overlooked by banks for a mortgage things had been tough.

"It's a weight that my wife and I would not have to consider when we're saving towards buying a house," Mr Packer said.

"It could be not doing extra overtime, it could be the ability to take a family holiday or something else that then we don't have to sacrifice for.

"That's something that we've had to do a lot in the last couple of years with rising cost of living."

Costings put the income from its five per cent levy on visitors using short stay accommodation at $11 million per year, totalling $44 million over a four-year term.

The stamp duty write-offs will cost an estimated $64.3 million over the two years it runs, until June 30, 2026 when it will be reviewed "subject to prevailing market and economic conditions".

The funds raised through the levy will pay for the stamp duty policy, making for a a net cost of $20.3 million.

Current policy offers eligible first home buyers a 50 per cent discount on stamp duty attached to the purchase of an existing home up to the value of $600,000.

This was set to end on June 30, 2024.

Premier Jeremy Rockliff said the new "Stamping Out Stamp Duty" policy would make it easier for Tasmanians to get on the property ladder and forecasts showed about 1500 people would benefit each year.

"That kind of money can literally make the difference between being able to buy a first home, or not - particularly given the need for a large upfront cash deposit when buying a house," Mr Rockliff said.

"Importantly, we will help pay for this with the new short stay levy, which will be paid overwhelmingly by interstate and overseas travellers.

"Every cent of that levy will go directly to Tasmanian first home buyers."

Housing Minister Nic Street said it would help more people live out the "Great Australian Dream".

"Already, our stamp duty discounts have helped 8,000 young Tasmanians into their first home in the past six years," Mr Street said.

"But we know that it isn't getting easier for young Tasmanians to achieve the Great Australian Dream of home ownership.

"The economic gains that our state has made under our majority Liberal Government has also brought growing pains, including housing supply and affordability challenges."

Labor leader Rebecca White said further housing policy was yet to be announced, but pointed to existing commitments like an expanded shared equity policy and concessions it would offer to developers in a build-to-rent scheme.

"Tasmanian Labor knows it is becoming increasingly difficult for Tasmanians to have a place to call home," Ms White said.

"We've already announced our build to rent scheme, which will supply more homes for Tasmanians, and a $20 million expansion of the MyHome scheme to see 200 more Tasmanians get a foot in the door of home ownership with just a two per cent deposit."