Tasmania has moved to keep extra support flowing for first home construction, confirming its budget would deliver a higher‑than‑planned grant for new builds.
The Tasmanian government has used the 2026–27 state budget to set the First Home Owner Grant at $20,000 for eligible Tasmanians who build or buy a newly constructed dwelling, rather than allowing it to drop back to the legislated $10,000 level.
Under existing law, the grant was scheduled to revert to $10,000 once the current, time‑limited $30,000 payment expired at the end of June.
The decision instead provides a halfway step, locking in a $20,000 grant for the year ahead to help first‑timers edge over the deposit line as construction and borrowing costs remain elevated.
Tasmanian state Treasurer Eric Abetz said the government wanted to ensure aspiring buyers did not face a sudden reduction in support.
“Owning your first home is a major milestone, and the grant will make a real difference for Tasmanians trying to enter the market,” Abetz said.
He also underlined that the assistance would continue to be tied to new stock rather than established dwellings.
“Eligible first home buyers building or purchasing a new home will be able to access the $20,000 grant, providing stronger support at a time when affordability remains a key challenge,” he said.
“This measure puts money back into the pockets of first home buyers while also stimulating new housing supply and supporting jobs across the building industry.”
Industry backs focus on new supply
The Housing Industry Association’s (HIA) Tasmanian arm has welcomed the budget move, saying that it underpinned confidence for buyers planning to build once the current $30,000 grant ends.
“The announcement ensures support for new home building remains strong beyond the end of June,” HIA executive director, Tasmania, Benjamin Price said.
Price noted that the current temporary payment had already changed behaviour by prompting buyers to accelerate building decisions.
“The $30,000 grant has helped many Tasmanians bring forward decisions to build, and that support has mattered during a tough period for affordability,” he said.
“What’s important now is certainty, and setting the grant at $20,000, rather than allowing it to fall back to $10,000, gives first home buyers confidence to keep moving ahead.”
Price also used the announcement to restate the HIA’s preference for incentives that expanded supply instead of inflating demand for existing housing.
“Policy settings must favour new housing supply over existing homes if we are serious about tackling our housing challenges in Tasmania,” he said.
[Related: Tasmania–Commonwealth deal earmarks new homes for FHBs]
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