ISCOVER
The state government has reaffirmed plans to triple the First Home Owner Grant from next year.
The Tasmanian government has confirmed plans to triple the First Home Owner Grant to $30,000 for newly built homes and extend the payroll tax exemption for apprentices.
From 1 January 2026, eligible first home buyers who contract to build their home can receive a $30,000 grant – three times more than the current grant amount.
The Tasmanian Liberal government also extended its payroll tax rebate scheme for apprentices, trainees, and youth employees until 30 June 2026.
Beginning on 1 July 2025, the legislation allows eligible businesses employing apprentices and trainees to claim a rebate for up to two years and for youth employees for one year, provided their employment started before 30 June 2026.
The First Home Owner Grant and payroll exemption changes were made through the Taxation and Related Legislation Bill.
Commenting on the changes, Minister for Housing and Planning Kerry Vincent said: “Our Government is backing in jobs and addressing housing supply.
“This move will help more Tasmanians into their first home and provide more work for our construction industry. This bill will also get more Tasmanians on the tools by extending the payroll tax rebate for apprentices.
“We are supporting more Tasmanians into homes and delivering on our $30 billion infrastructure pipeline.”
In June 2025, the Tasmanian Liberal Party pledged that if re-elected, it would triple the First Home Owners Grant.
The party also pledged to increase the value cap for new home construction under the MyHome shared equity program to $800,000. No timeline was given for the change to come into effect.
The scheme is aimed at helping Tasmanians with as little as a 2 per cent deposit buy their first home.
Home buyers eligible for the First Home Owners Grant can use this to help satisfy the deposit of the MyHome program.
Tasmania’s expanded First Home Owner Grant generally compares favourably to equivalent schemes in other states, with NSW, Victoria, and Western Australia all capping the maximum size of grants available at $10,000.
[Related: Home Guarantee changes cut deposit saving time by 4 years: HIA]
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