Guy Barnett, Tasmania's minister for building and construction in the incumbent liberal government, has announced that if re-elected,  his government will introduce stamp duty relief for first-home buyers of existing homes.

"It's certainly very good news," Real Estate Institute of Tasmania president Tony Collidge told SCHWARTZWILLIAMS.

"The institute has been lobbying for this for some time," he said.

"It will be really beneficial for first-home buyers," he said.

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In particular, Collidge said the stamp duty relief will help first-home buyers in the north and the north-west of the state.

Collidge said that Tasmania already has a 'First Home Builders Boost' incentive of $20,000 to encourage first-home buyers who wish to build their first home.

"Now all first-home buyers will be eligible for some sort of support," he said.

"It means first-home buyers can get into the market sooner rather than later," said Collidge.

A statement from the REIT said, "The REIT is in strong support of any initiative that will assist those wishing to purchase or build their first home.

"The growing housing affordability issue for both those wanting to purchase or rent a property in Tasmania has grown significantly over the past 12 months to two years."

The stamp duty discount will apply to those who wish to purchase an established property up to the value of $400,000, resulting in a saving of approximately $7,000 for first-home buyers.

Three year land-tax holiday

Barnett also announced that if re-elected the government will provide a three-year land tax holiday for all newly built properties made available for long-term rental.

The policy will support the construction of up to 2,000 rental properties, said Barnett. 

"Rental availability is a growing pain of Tasmania’s strong economy and a growing population, and this policy boosts the number of rental properties on the market to meet demand," said a statement from the government.

"I think that's a win," said Collidge.

"It will encourage investors to get into the market," he said.

The land tax holiday will apply to:

• new dwelling that have not been previously occupied
• have an Occupancy Certificate issued between 8 February 2018 and 7 February 2021
• must be rented for a minimum lease term of 12 months
• must be substantially occupied during the relevant tax year

Read the Tasmanian government's 'Improving Tasmania's rental market' report in full.

Read more about Tasmanian real estate:

"People are hurting" says Tony Collidge, REIT, on strong growth in the Tasmanian housing market

Hobart's Chigwell has the highest rental returns in Australia

Tasmanian market going from strength to strength: REIT quarterly report