A Tasmanian government initiative aimed at promoting the sale of affordable residential land has yet to yield any results, nearly a year after launching.
According to the Department of State Growth, $682,505 has been awarded to seven developers under the Residential Land Rebate Program, which opened for applications 10 months ago. However, as of May 20, no lots have been sold.
The scheme offers developers rebates of up to $15,000 per affordable lot, for a maximum of 40 lots per applicant, to assist with development costs like connecting essential services such as internet, water, and electricity.
Though applications began in July 2024, the program was retroactively applied from July 1, 2023. Developers were given an 18-month deadline to complete sales.
Previous Round Delivered Thousands of Lots
A prior round of the program in 2023 — which offered $10,000 per lot — saw more than 3,000 lots sold. That success led to a $10 million funding boost promised by the Liberal government during the state election.
Despite this, the current round has yet to bring any land to market. Housing Minister Felix Ellis said developers still have time under the 18-month window to complete sales.
Program Structure and Rebate Payments
The program pays half of the rebate upfront to assist with initial development. The remaining half is only released once developers prove that lots have been sold below a set affordability cap, which varies by location.
An example on the program’s official page suggests developers may not need to return funds if they sell some lots above the cap or leave others unsold. For instance, a developer approved for 40 lots would get $300,000 initially. If 30 lots are sold below the cap, they’d get another $225,000, with no mention of repayment for the remaining 10.
While the guidelines say funds may be reclaimed if the terms aren’t met, critics say this language is vague.
Concerns Over Program Effectiveness
Labor’s finance spokesperson, Luke Edmunds, criticized the program, claiming it’s “clearly not meeting its objectives.” He expressed concern that developers appear not to be required to repay unearned funds.
“They’ve accelerated land approvals that remain undeveloped, bungled planning reforms, and now may be giving out public money with no results,” Edmunds said.
Affordable Land Sales Key to Housing Targets
The program is part of the state’s broader effort to reduce homelessness by increasing the supply of affordable housing. Each lot sold contributes to the government’s goal of delivering 10,000 social and affordable homes by 2032.
The initiative has been criticized for including unsold land and existing rentals in its tally. Nevertheless, Minister Ellis argues that developing land helps enable new housing.
Since the target was announced, 4,381 homes have been delivered — including 411 affordable land lots — but the social housing waitlist has increased from 4,405 to 5,094.
Mr. Ellis insists the government is committed, noting that the recent state budget allocates $500 million over the next four years to housing.
How ‘Affordable’ Is Defined
The threshold for what’s considered affordable varies by region:
- Greater Hobart (including Kingborough, Clarence, and Brighton): up to $380,000
- Urban areas (e.g., Burnie, Launceston, Devonport, West Tamar): up to $310,000
- Urban fringe areas (e.g., Huon Valley, Latrobe, Waratah-Wynyard): up to $280,000
- Rural areas (e.g., Dorset, Kentish, Northern Midlands): up to $250,000
