Considering snapping up your first abode in Tasmania? You might find yourself saving nearly $29,000 in tax from 1 July.

The Tasmanian Government has officially waived stamp duty for eligible first home buyers entering the market in the Island State.

"As of today, owning a home is a little bit easier, with eligible Tasmanian first home buyers no longer having to pay a cent of stamp duty for any home valued up to $750,000," Tasmania minister for housing and planning Felix Ellis said earlier this week.

How much could first home buyers save?

Property value

Stamp duty payable as of 1 July 2024

Stamp duty payable previously

$500,000

$0

$ 9,124

$550,000

$0

$ 10,186

$600,000

$0

$ 11,249

$650,000

$0

$ 24,623

$700,000

$0

$ 26,748

$750,000

 $0

$ 28,935

All values calculated using Your Mortgage's stamp duty calculator

Unlike in some other states and territories, the stamp duty waiver is available to eligible first time buyers buying an existing property.

Those building a home can't take advantage of the waiver, but might receive a 50% stamp duty discount if they buy a new apartment or unit off-plan or under construction.

Previously, first home buyers entering the market in Tasmania could receive a 50% stamp duty discount for purchases worth up to $600,000.

And if you purchased earlier this year, you may have good news awaiting you.

The change will be backdated to 18 February 2024 and available until 30 June 2026, meaning eligible buyers who bought in recent months could see their stamp duty returned to them.

The stamp duty waiver was first announced prior to Tasmania's recent state election and came into effect this week following the passage of legislation.

In April, it was estimated that waiving the tax would help 1,500 Tasmanian families to enter the property market each year.

It's the latest stamp duty change enacted by a state government, with Queensland and South Australia having recently lifted or abolished the value ceiling at which discounts or exemptions are cut.

First time buyers purchasing or building a new home in South Australia will no longer pay a cent of stamp duty, while Queensland first home buyers won't pay the tax if they spend $700,000 or less.

See also: A state-by-state guide to stamp duty exemptions

Tasmanian First Home Owner Grant diminished by two-thirds

In not-so-good news for eligible Tasmanian first home buyers, the state's First Home Owners Grant has been slashed to just $10,000 as of 1 July 2024.

The grant is available to first-time buyers who enter the market by purchasing or building a new dwelling.

It previously offered $30,000 to those who purchased or built a new home between April 2021 and June 2024, and $20,000 for those who did so between July 2016 and March 2021.

The $10,000 grant is notably less generous than the $15,000 and $30,000 grants respectively offered to eligible buyers in South Australia and Queensland.

Though, it's in line with grants promised to buyers or builders of new homes in NSW, Victoria, and Western Australia.

Stamp duty discounts offered to buyers of off-the-plan apartments

It's not just first home buyers set to benefit from the Tasmanian Government's stamp duty changes.

Those buying a new apartment or unit off-the-plan or under construction may be able to take advantage of a 50% stamp duty discount.

The discount will be available to those spending less than $750,000 on their shiny new abode, potentially saving as much as $14,468.

Image by Nico Smit on Unsplash

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