Tasmanian first home buyers building a new house can claim a $20,000 grant from next month after parliament passed laws extending the payment for another year.
The amount is double the $10,000 the grant was due to fall to under existing law, but $10,000 less than the $30,000 on offer until the end of June.
Treasurer Eric Abetz welcomed the bill passing parliament this week.
“Our first home owner grant is good for Tasmanian first home owners and the construction sector,” Abetz said.
He earlier told parliament the bill would stop support for buyers falling away at the end of the financial year.
“This bill ensures that support for first home buyers of new homes does not fall back to the legislated base of $10,000 at the end of this financial year,” he said.
The Housing Industry Association had called for the grant to be lifted to $50,000.
Abetz said the government landed on a “measured and responsible” figure that weighed help for buyers against budget pressures.
“This approach strikes the right balance,” he told parliament.
The grant only applies to people who build or buy a brand-new home.
Abetz said the earlier, larger handout had already delivered results, with hundreds of applications and 75 new homes breaking ground.
Government figures show 314 grants have been approved and 161 paid so far this financial year, putting approvals on track to be 55% higher than the year before.
First home buyers will also lose a separate concession at the end of the month.
The full stamp duty exemption on established homes worth up to $750,000 ends on June 30 and has not been extended.
It will not apply to sales that settle after that date.
The $20,000 grant runs from July 1 to June 30 next year.
