Housing market shake-up: Range of government initiatives tackle housing crisis

The property market is poised to receive a boost from July 1, as a slew of government initiatives come into effect. What this means for first-home buyers, renters and investors.

Housing and Planning Minister Felix Ellis discusses a slew of new housing initiatives that come into effect from July 1 at Civic Square, Launceston. Picture: Stephanie Dalton

The Tasmanian housing market is getting ready for a shake-up as a slew of government initiatives will come into effect from July 1.

Most taxpayers will have a rise their take-home pay as a result of the new stage three tax cuts, with the increase in incomes set to raise the maximum amount of money that buyers can borrow.

But while the adjustment to tax rates is the biggest change affecting the property market in the new financial year, it’s not the only one.

First-home buyers will benefit from an extension of support schemes such as the MyHome shared equity program and cuts to stamp duty, while low-income earners will benefit from upgrades to the Housing Connect social housing portal.

Housing and Planning Minister Felix Ellis said the changes would make a real difference in helping Tasmanians buy their first home.

“We know that Tasmanians want to own their own patch of paradise. Owning your own home is a key part of the Tasmanian dream,” Mr Ellis said.

“From today, we’ve stamped out stamp duty for eligible first home buyers, which is a significant reduction in terms of the cost of living for first home buyers, and it means that they can get into their homes sooner and could save families up to $28,000.”

Housing and Planning Minister Felix Ellis. Picture: Stephanie Dalton

Mr Ellis said the policy was retrospective to February 18, 2024, which means any eligible first-home buyer who has bought a house since then will get their stamp duty returned.

“Another key part of what we’re looking to do in the housing space that comes online from July 1 is our stamp duty relief for people buying apartments,” he said.

“We’re offering a 50 per cent reduction on stamp duty for apartments for eligible buyers.”

Mr Ellis said from July 1, there would also be a significant increase in the assistance available to buyers of new homes or house and land packages.

“Our MyHome shared equity program that we know has been so successful for everyday Tasmanians to get into the housing market is now extended,” he said.

Under the expansion, the household limit for singles is set to increase to $116,933 and $134,475 for couples.

Mr Ellis said an overhaul to the housing assistance portal and platform Housing Connect 2.0 would also come into effect from Monday.

“We know that we need to do better when people come to us seeking emergency housing relief, and the old ways of doing things were unnecessarily stressful and confusing,” Mr Ellis said.

“So from July 1, the first parts of that important upgrade to our support for people doing it tough in Tasmania come online to better connect people with the services available, and also to support them and build capability to help them live independently.”