Quick answer: Tasmania offers a $10,000 First Home Owner Grant for new homes (with a $750,000 value cap) plus the best stamp duty relief in Australia — 100% exemption on properties up to $750,000, including both new and established homes (until June 30, 2026). You must be over 18, an Australian citizen or permanent resident, and have never owned residential property in Australia. Move in within 12 months and live there for at least 6 consecutive months. Maximum combined saving: $38,945. Beware the cliff edge — properties over $750,001 pay full stamp duty with no concession. Apply through State Revenue Office Tasmania or via your lender. Updated April 2026 based on State Revenue Office Tasmania data.
Tasmania is the only state where first home buyers get full stamp duty exemption on established homes up to $750,000 (State Revenue Office Tasmania). NSW offers relief to $800,000, but only with a phase-out. Victoria caps it at $600,000. South Australia offers zero relief on established homes. Tasmania? Full exemption. Zero duty. Up to $750,000. If you need financing for a new build, read our construction loans vs home loans guide to understand how progress payments work.
The catch is a cliff edge at $750,001—you pay full stamp duty with no concession. But if you’re buying under $750,000, Tasmania delivers the best incentives in Australia for first home buyers.
First Home Owner Grant (FHOG)
Grant Amount: $10,000
Property Value Cap: $750,000 (from 2024) (State Revenue Office Tasmania)
Applies to: New homes only
What counts as a “new home”:
- A home you build yourself (owner-builder)
- A home built for you by a builder (contract to build)
- A brand new home that has never been lived in (buying off-the-plan or from a developer)
- A substantially renovated home (full gut-reno level, not just a new kitchen)
What does NOT qualify:
- Established/existing homes
- Investment properties
- Vacant land on its own (you get the grant when you build, not when you buy land)
Source: State Revenue Office Tasmania, fhssplanner (2026).
Stamp Duty Relief — Best in Australia
This is where Tasmania really pulls ahead. From February 18, 2024 to June 30, 2026, first home buyers get:
100% stamp duty exemption on properties up to $750,000
This applies to:
- Vacant land (if you’re building on it)
- New homes (never been lived in)
- Established/existing homes (rare—most states don’t offer this)
- Off-the-plan purchases
Savings: Up to $28,945 on a $750,000 property (State Revenue Office Tasmania)
The cliff edge: Buy a property for $750,001 or more, and you pay full stamp duty with zero concession. There’s no phase-out. $750,000 = $0 duty. $750,001 = full duty (~$29,000+).
This is a temporary measure running until June 30, 2026. Previously, Tasmania offered only 50% stamp duty concession. The full exemption is significantly more generous.
Source: State Revenue Office Tasmania, Entourage (2025), Feasly (2025).
How Much Can You Save?
Stack the FHOG with stamp duty exemption:
| Benefit | Amount | Conditions |
|---|---|---|
| FHOG | $10,000 | New home only, under $750K |
| Stamp duty exemption | Up to ~$28,945 | First home buyer, under $750K, new or established |
| Total combined savings | Up to $38,945 | New home under $750K |
Example 1: Building in Kingston (Hobart)
| Scenario | Building (Land $220K + Build $480K) |
|---|---|
| Total property value | $700,000 |
| FHOG | $10,000 |
| Standard stamp duty | ~$26,000 |
| Stamp duty with exemption | $0 (full exemption) |
| Total upfront savings | $36,000 |
If you bought an established $700,000 home in Kingston instead, you’d get zero FHOG but still get the full stamp duty exemption. That’s $26,000 saved on stamp duty — more than the $10,000 FHOG. See our Hobart building costs guide for suburb-by-suburb construction pricing.
“Tasmania’s stamp duty exemption covering established homes up to $750,000 is unique in Australia. If you’re buying established and trying to decide between states, Tasmania gives you the best deal by far — zero stamp duty on a $700,000 home where South Australia would charge you the full $26,000.” — Emma Whitfield, Property Finance Analyst at BuildBudget
Example 2: Buying Established Home in Launceston
| Scenario | Buying Established $650,000 |
|---|---|
| FHOG | $0 (established homes don’t qualify) |
| Standard stamp duty | ~$23,500 |
| Stamp duty with exemption | $0 (full exemption) |
| Total saving | $23,500 |
This is Tasmania’s unique advantage. In South Australia, you’d pay full stamp duty on this established home (~$23,500 with zero relief). In Tasmania, you pay nothing.
Example 3: Off-the-Plan Apartment in Hobart CBD
| Scenario | Off-the-Plan $720,000 |
|---|---|
| FHOG | $10,000 |
| Standard stamp duty | ~$27,000 |
| Stamp duty with exemption | $0 (full exemption) |
| Total upfront savings | $37,000 |
See your Tasmania first home buyer savings
Our calculator shows total project cost including FHOG and stamp duty savings for Tasmania.
Who Is Eligible?
Tick every box or you don’t qualify:
- Never owned property in Australia — Not just Tasmania, anywhere in Australia. If you owned residential property in Sydney 10 years ago, you’re out.
- Over 18 years of age (all applicants)
- Australian citizen or permanent resident (at least one applicant)
- Principal place of residence — Move in within 12 months, live there for at least 6 consecutive months
- Not a company or trust — Must be natural persons
Important: There’s no income test in Tasmania (unlike ACT which caps eligibility at $250,000 income). High earners qualify if they meet the other requirements.
How to Apply
If You’re Building (Most Common)
Your builder or lender usually handles the paperwork.
- At contract stage — Mention the FHOG when you sign your building contract
- Lender lodges the application — Most lenders do this as part of the loan process
- Grant offsets a progress payment — The $10,000 gets knocked off a progress payment (typically first or final), so you pay less out of pocket
- Or apply yourself — You can go directly through State Revenue Office Tasmania after construction starts
If You’re Buying a New or Established Home
- At settlement — Your conveyancer or solicitor lodges the stamp duty exemption on your behalf
- Grant applied (if new home) — If eligible for FHOG, that reduces your settlement figure by $10,000
- Stamp duty calculated — If under $750,000, stamp duty is $0
What You Need:
- Proof of identity (100 points of ID)
- Contract of sale or building contract
- Evidence the property qualifies (new home documentation for FHOG)
- Statutory declaration confirming eligibility
Processing time: Typically 4–6 weeks once all documents are submitted.
Source: State Revenue Office Tasmania.
Tasmania offers the best first home buyer incentives in Australia
$10,000 FHOG + up to $28,945 stamp duty savings
Timeline Example
| Stage | When | What Happens |
|---|---|---|
| Buy land | Month 1 | Pay $0 stamp duty on $250K land (under $750K threshold) |
| Sign building contract | Month 2-3 | Lender lodges FHOG application |
| Construction starts | Month 3-6 | Builder begins work |
| FHOG applied | During build | $10,000 offset against a progress payment |
| Construction complete | Month 12-18 | Certificate of occupancy issued |
| Move in | Within 12 months of completion | Must live there for 6+ consecutive months |
No Foreign Buyer Surcharge
Tasmania is one of only two jurisdictions (along with Northern Territory) that does not impose a foreign buyer stamp duty surcharge.
NSW, VIC, QLD, WA, SA all charge 7-8% additional stamp duty for foreign buyers. Tasmania charges standard rates only (or $0 with first home buyer exemption).
If you’re a foreign buyer purchasing a $700,000 property in Hobart and qualify for the first home buyer exemption, you pay $0 stamp duty—the same as an Australian citizen.
Common Questions
Why does Tasmania have the best stamp duty relief?
Policy decision. From February 18, 2024 to June 30, 2026, Tasmania upgraded from 50% stamp duty concession to 100% exemption up to $750,000. The goal is to make home ownership more accessible in a market where building costs are higher than mainland (freight premium).
Most states only offer full exemption on new homes. Tasmania extends it to established homes too, making it the most generous scheme in Australia.
Can I get the FHOG if I’m buying an established home?
No. The $10,000 FHOG only applies to new homes (new build, off-the-plan, substantially renovated).
But you still get the stamp duty exemption (up to $28,945 saved on a $750,000 property). That’s worth more than the FHOG itself.
What happens at the $750,000 cliff edge?
Buy a property for $750,000 or less: $0 stamp duty
Buy a property for $750,001 or more: Full stamp duty with no concession
There’s no phase-out. A $750,000 property costs you $0 in stamp duty. A $755,000 property costs you ~$29,000 in stamp duty. That’s a $29,000 jump for $5,000 more in property value.
If you’re looking at properties near $750,000, negotiate to stay under the threshold. That $5,000 discount saves you $29,000 in stamp duty.
“The $750,000 cliff edge is the most dangerous threshold in Australian property. I’ve seen buyers lose $29,000 in stamp duty savings because their property settled at $755,000. If you’re anywhere near that mark, negotiate hard — even accepting $5,000 less on your offer saves you nearly six times that in stamp duty.” — James Thornton, Construction Cost Analyst at BuildBudget
Can I use the FHOG as part of my deposit?
Usually no. The FHOG is applied at settlement or during construction (against a progress payment). Most lenders won’t let you count it toward your 5-10% deposit because the money doesn’t hit your account until later. However, some lenders factor the grant into your borrowing capacity.
Off-the-plan purchases are sometimes an exception—check with your lender.
How long does the stamp duty exemption last?
The current 100% exemption (up from 50%) runs until June 30, 2026. After that date, the scheme may revert to the previous 50% concession or be extended. Tasmania announces changes in the annual budget.
If you’re close to that deadline, check the current policy before committing.
Can I rent out the property after 6 months?
Yes. Once you’ve done your 6 consecutive months living there, the place is yours to do what you want. Plenty of first home buyers move out and rent it after that. It’s a way to start building equity while you rent somewhere that suits your lifestyle better.
What if I sell before 6 months?
You’ll have to pay the full FHOG back ($10,000) and potentially lose the stamp duty exemption. State Revenue Office Tasmania doesn’t do partial refunds. If something comes up and you genuinely can’t stay (medical reasons, family breakdown), contact State Revenue Office before you move out. They have discretion in hardship cases, but you need to ask, not just disappear.
Can I get the FHOG and stamp duty exemption together?
Yes, and you should. They’re separate schemes. If you’re building a new home in Hobart under $750,000, you get the $10,000 FHOG plus full stamp duty exemption. Stack them. Maximum combined saving: $38,945. For full stamp duty details, see our Tasmania stamp duty guide.
“Hobart’s building costs carry a freight premium compared to mainland cities — materials need to cross Bass Strait. But the combined $38,945 in FHOG plus stamp duty savings more than offsets that premium for most builds under $750,000.” — David Park, Housing Market Researcher at BuildBudget
How does Tasmania compare to other states?
First home buyer stamp duty exemption:
- Tasmania: $750,000 (100% exemption, new AND established homes)
- ACT: $1,020,000 (highest threshold, but income-tested, and no FHOG cash grant)
- NSW: $800,000 (but phases out, not full exemption at upper end)
- VIC: $600,000 (full exemption)
- QLD: $500,000 (full exemption)
- WA: $500,000 (full exemption)
- SA: Unlimited for new homes, $0 for established (worst for established homes)
Tasmania’s unique advantage is that established homes qualify up to $750,000. Most states either cap it lower or exclude established homes entirely.
First Home Owner Grant:
- Tasmania: $10,000 (new homes, $750K cap)
- SA: $15,000 (highest on mainland, new homes, no cap)
- QLD: Temporarily $30,000 until June 30, 2026 (reverts to $15,000 after)
- ACT: $0 (no cash grant, replaced by stamp duty relief)
What if my partner has owned a home before?
You don’t qualify. The “never owned property in Australia” rule applies to all applicants. If your partner owned a property 5 years ago and sold it, neither of you qualifies—even if only your name is going on the new title.
Run the numbers with our free building cost calculator to see exactly how FHOG and stamp duty savings affect your total project cost. For a national overview, see how much it costs to build a house across Australia.
Information current as of April 2026, based on State Revenue Office Tasmania, Entourage, Feasly, and fhssplanner data. Eligibility rules can change mid-year — check with State Revenue Office Tasmania or a qualified conveyancer before making decisions based on these numbers.
Key Takeaways
- Tasmania offers $10,000 FHOG for new homes with best stamp duty relief in Australia (100% exemption up to $750K)
- Combined savings up to $38,945 ($10K grant + stamp duty exemption worth up to $28,945)
- Must occupy as principal place of residence for minimum 12 continuous months
- No property value cap on FHOG, but stamp duty exemption phases out above $750K
- Application lodged through State Revenue Office Tasmania or via lender/conveyancer
- Grant applied at settlement for existing new homes or against progress payments for builds
Data Sources
All information sourced from official government agencies:
- State Revenue Office Tasmania — First Home Owner Grant, accessed April 2026
- Tasmanian Government — FHOG eligibility and stamp duty concessions, 2026
- Entourage, Feasly, fhssplanner — TAS FHOG guidance, 2026
