Government offers Tasmanians $10k bonus if they build a granny flat on their existing property

A new state government policy will see payments to Tasmanians if they build a granny flat on their existing property, in a cash splash designed to tackle the state’s housing crisis. DETAILS >>

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TASMANIANS are being enticed with the promise of a $10,000 bonus if they build a granny flat on their existing property, in a cash splash designed to tackle the state’s housing crisis.

The state government policy will see payments to those who make the new ancillary dwellings available for long-term rental for at least two years.

But those considering the offer will need to be quick because the program is limited to the first 250 new dwellings that are self-contained and additional to the primary home.

To qualify for the scheme, the dwelling must have a floor area of less than 60 square metres and share the existing utility service connections.

And in an added incentive, the government is removing the requirement to have a permit to construct an additional dwelling on properties under the program. Housing Minister Roger Jaensch said additional dwellings allowed homeowners to accommodate changing family needs and add value to the property.

Roger Jaensch. Picture: Zak Simmonds

“Importantly, they also provide a way to activate more housing supply in existing housing areas, providing another option for people seeking small, affordable accommodation close to services,’’ he said.

Speaking during his State of the State address, Premier Peter Gutwein said the program would make it easier to build, and boosting supply would put downward pressure on rents.

Property agent Tim Cordwell, of PRD Hobart, said granny flats could typically add between $60,000 to $80,000 to the value of a property.

Granny flats can add up to $80,000 to the value of a property.

Mr Cordwell has a current listing in Lenah Valley that features a self-contained studio apartment, but he said properties with such a feature were not abundant across Hobart.

“We’ve had a lot of people look for them, not only with older parents, but teenage children and those seeking an extra income,’’ he said.

“But there’s not a huge amount of stock around at the moment.”

Mr Cordwell himself has a separate dwelling at his Old Beach property, in which his mother lives.

“My mother lives under our house in a unit and that works really well for us,’’ he said.

Property Council of Australia Tasmanian executive director Rebecca Ellston welcomed the government’s policy and intention to move away from “inefficient” planning pathways, but said it was important the new arrangements were applied appropriately.

“If poorly and inconsistently applied it could mean a potential loss of amenity in our suburbs, which are already under pressure from reasonably high density controls,’’ she said.

“This has the potential to undermine progress in the urban renewal within the city, the Hobart-Glenorchy corridor and in the existing greenfield areas.”

Ms Ellston said the state needed more of all types of housing, in addition to more efficient planning and approval processes.

The program is expected to open for applications next month, with more information set to be released in coming weeks.

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