Buying a House in Hobart? Here’s What You Need to Know About Stamp Duty Concessions in Tasmania

By Deltos Finance on April 4, 2024
stamp duty concessions tasmania

When you purchase a house or investment property in Hobart, Tasmania, you will likely pay a stamp duty—just like in all other states of Australia. Stamp duty can be a hefty upfront cost, so you may wonder whether concessions or exemptions are available. Today, we’ll help discuss how stamp duty works, how it is calculated and which stamp duty concessions in Tasmania are available for different types of individuals, including first-home buyers, pensioners or those in personal relationships. 

What Is Stamp Duty in Tasmania, and How Is It Calculated?

Stamp duty or transfer duty is a government tax or fee you must pay when purchasing property, land and other types of assets. Essentially, it’s a fee for transferring the property title or asset ownership into your name.

While stamp duty rates may differ across Australia, it’s influenced by common factors. These include the property value or sale cost, whichever is higher. The type of property—whether it’s rental or owner-occupied—can also affect the rates. More importantly, the location of the property matters. The stamp duty rates in Tasmania may greatly differ from those required in Victoria, Queensland or New South Wales. 

So, how can you calculate stamp duty in Tasmania? The amount of stamp duty you must pay is primarily based on the dutiable value of the property. The dutiable value is either the property’s sale cost or its market value—whichever is higher. If the dutiable value is less than $3000, you only have to pay $50 in stamp duty in Tasmania. That’s according to the state’s current property transfer rates. On the other hand, if the dutiable value of the house you want to buy in Hobart exceeds $725,000, you must pay $27,810 plus $4.50 for every $100 or part by which the dutiable value goes over the maximum amount of $725,000. 

Check out Tasmania’s stamp duty calculator and guide. That way, you can see exactly how much you must pay in transfer duty when buying a property in this state. 

Are There Stamp Duty Concessions Available in Tasmania?

The short answer is yes! There are available stamp duty concessions and exemptions in Tasmania. Scroll down to learn more about the specific details. 

stamp duty tasmania

Stamp Duty Concessions for First Home Buyers

Tasmania offers a 50% discount on property transfer duty for eligible first-home buyers. To qualify for this concession:

  • You must purchase an established home.
  • The property’s value cannot exceed $600,000.
  • The property must be purchased between 1 January 2022 and 30 June 2024.
  • You must not have received a First Home Owner Grant in any Australian state or territory or the Duty Concession before.

This concession is designed to make homeownership more affordable and viable for first-time buyers by reducing the upfront costs of purchasing a home. Visit this particular TRO page to learn more about eligibility and application submission.

Stamp Duty Concessions for Pensioners

Are you a pensioner in Tasmania planning to buy a new house in Hobart

Pensioners in Tasmania are also eligible for a stamp duty concession when downsizing. If you’re a pensioner looking to sell your current property and move to a smaller home in the same state, you can receive a 50% discount on stamp duty, given that the dutiable value of the new house is less than that of your former home. To be eligible for stamp duty concessions for pensioners in Tasmania:

  • The dutiable value of your new property must be less than your former home.
  • The value of the new property in Tasmania cannot go over $600,000.
  • The sale of your previous house must take place between 10 February 2018 and 30 June 2024.
  • The purchase of the new home is settled within six months (either before or after) of selling your former residential property.
  • At least one of the purchasers/transferees must be 60 years or older.

Check out the TRO page on stamp duty concessions for pensioners to learn more about eligibility requirements and how you can apply online or via mail.

Stamp Duty Exemption for Those in Personal Relationships

Transfers between parties to a marriage, significant relationship, or caring partners are exempt from duty according to Section 55 of the Duties Act 2001. To be eligible for this stamp duty exemption in Tasmania, the property must be the principal residence for both parties at the time of the transfer. Moreover, both parties must hold the property as joint tenants or tenants with equal shares after the transfer.

When Do You Pay Stamp Duty in Tasmania?

We’ve already answered the questions: How much is stamp duty in Tasmania? Can I get a concession on stamp duty in Tasmania? So, the next important detail you must keep in mind is when you have to settle your property transfer duty in Tasmania.

In Tasmania, stamp duty must be paid within three months of settlement. If you miss the deadline, you may be liable for penalty interest on the total purchase price. 

Let Us Assist You

Are you buying a house in Hobart, and do you want to learn more about stamp duty concessions in Tasmania? Don’t hesitate to reach out to us here at Deltos Finance.

Our seasoned mortgage brokers in Hobart will guide you in your real estate purchase; they’ll inform you about the stamp duty amount for your new house and whether you are eligible for concessions or certain exemptions. Contact us today. 

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