Tasmania increases equity contribution for new home builder-buyers

The scheme allows Tasmanians to build or buy a home with as little as a 2 per cent deposit.

The recent changes apply to buyers of new homes or house and land packages, in an attempt to incentivise new construction in the state.

Previously the government pledged to contribute $200,000 or 40 per cent, whichever is the lesser amount, to the purchase price of newly built homes in exchange for an equivalent equity share.

Under the changes, the amount the government is prepared to put down will increase to $300,000 or 40 per cent (whichever is lesser).

In addition, the household income limit for buyers of new builds will increase by 25 per cent to $116,933 for a single and $134,475 for a couple.

Previously, the scheme was only available for singles earning up to $93,000 and couples earning $107,000, with extra allowances made for children.

Ellis noted that for those prepared to build a new home, “this means that a couple earning $130,000 can finally realise their dream of home ownership with as little as a 2 per cent deposit”.

“We’re doing everything in our power to help more Tasmanians achieve that great Australian dream of owning your own home,” Ellis added.

The Housing Minister took the opportunity to report on the scheme’s rate of success, revealing that since the launch of the MyHome program in 2022, 380 households have participated in the scheme.

Of those the vast majority bought existing homes, with 282 buyers opting to purchase from a previous owner. A further 80 participants purchased house and land packages, while 18 Tasmanians bought new homes.

Ellis said that based on those numbers, the MyHome had shown itself to be an “incredibly popular program that is supporting Tasmanians to enter private home ownership”.

“The Tasmanian government will continue doing everything possible to help Tasmanians achieve the dream of home ownership under our 2030 Strong Plan for Tasmania’s Future,” he said.