A new housing pact between Tasmania and the federal government will reshape the state’s growth corridors and tilt new stock to entry‑level buyers.
The federal and Tasmanian state government have agreed to a $165 million housing package that will support around 4,000 new dwellings across the state, with up to 2,101 homes to be sold only to first home buyers.
The agreement locks in Tasmania’s in‑principle slice of the Commonwealth’s 100,000 homes for FHB program.
The federal contribution combines $115 million in concessional loans with $50 million in grant funding, while the state and local councils will chip in land and additional capital.
A large share of the money is earmarked for basic services and roads in growth‑pressure LGAs on the outskirts of Hobart and Launceston.
Enabling works in Brighton, Sorell, and Meander Valley are expected to clear the way for roughly 2,700 dwellings, with almost 1,100 of those to be allocated to FHBS.
To get shovels in the ground faster, the Commonwealth will advance up to $35 million in concessional finance.
On top of the infrastructure component, the state will also be able to draw a further concessional facility of up to $80 million to support construction of more than 2,000 additional FHB homes in and around Hobart, Launceston, Devonport, and Burnie.
The first dwellings linked to the agreement are scheduled to reach the market from 2027–28.
Federal Housing Minister Clare O’Neil used the announcement to underline that the new stock was intended to prioritise younger households over investors.
“We’re determined to make it easier for young people and first home buyers to achieve the dream of owning a home – with no competition from investors,” O’Neil said.
Tasmanian Housing and Planning Minister Kerry Vincent characterised the arrangement as both a local and statewide intervention in a market which has been running ahead of supply.
“Every single house built in Tasmania makes a difference, and this partnership is a huge win for the entire state,” Vincent said.
Vincent also drew attention to the way the program singled out high‑growth corridors and locked in a sizeable tranche of homes solely for FHBs.
Building bodies back deal, press for skills and tax reform
Peak construction bodies have broadly endorsed the agreement, while pushing for complementary reforms on skills and tax ahead of the May federal budget.
Master Builders Australia CEO Denita Wawn said the industry viewed the package as a sign that governments were beginning to tackle supply constraints more aggressively.
“Builders welcome this deal following comparable ones announced in South Australia as well as the ACT and we look forward to others. Master Builders Australia appreciates the determination shown by both levels of government to build more homes,” Wawn said.
At the same time, Wawn said that infrastructure work would only translate into completed homes if skills and regulatory settings were addressed in tandem.
Master Builders Tasmania CEO Jenna Cairney said the mix of road, water, sewerage, and transport projects funded under the package would help bring forward projects that were currently stalled at the servicing stage.
“Whether roads, sewage, water or transport systems, it is all critical to bringing more Tasmanian homes online faster,” she said.
Cairney set the announcement against Master Builders’ own projections, which show Tasmania falling well short of its notional share of the National Housing Accord targets on current settings.
“Master Builders’ recently released forecasts predicted an almost 14,000‑home shortfall against Tasmania’s share of the National Housing Accord,” Cairney said.
Housing Industry Association’s (HIA) managing director, Jocelyn Martin, echoed those themes, saying the package aligned closely with its longstanding push for policies that opened up land and cleared infrastructure logjams.
“This announcement recognises that the fastest way to help first home buyers is to unlock more housing supply, and that means removing the infrastructure and planning barriers holding projects back,” Martin said.
[Related: Tasmania-Commonwealth deal earmarks new homes for FHBs]
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