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Residential Land Rebate

Affordable Residential Land Rebate

The Department of State Growth is now accepting applications for the Affordable Residential Land Rebate program.

The program is a Tasmanian Government initiative to help boost the availability of affordable residential land and improve housing availability.

The Tasmanian Government has committed $10 million to the program.

Rebates of up to $15,000 per lot are available to developers to help cover the cost of power, NBN, water and sewerage infrastructure. Rebates can be claimed for a maximum of 40 lots per developer.

Payments made under this program are split. Applicants can receive an upfront, 50 per cent payment on signing an agreement and a second payment, once applicants have submitted evidence they have brought rebate lots to market and sold them for an amount under that of an affordable land cap.

More information on how rebate payments are calculated and paid is provided below (refer Program Overview).

If you have queries please email the program team at RLrebate@stategrowth.tas.gov.au

Opens3:00pm 31 July 2024

Closes: 3:00pm 31 July 2026, or once the program funds have been exhausted (whichever comes first).

Download the Affordable Residential Land Rebate 2024 Program Guidelines (PDF 418.1 KB)

Program overview

Under this iteration of the Residential Land Rebate program; applicants are able to claim up to $15,000 per lot to help cover the cost of power, NBN, water and sewerage infrastructure.

Rebates can be claimed for a maximum of 40 lots per developer.

Specifically, applicants are able to claim:

  • an upfront 50 per cent payment of their total claim amount of eligible costs. The total claim amount is the total of eligible costs claimed by an applicant at the time of application; and
  • a second payment calculated on the number of rebate lots sold and at a price under that of the affordable land cap (as defined in the signed grant agreement). Applicants have 18 months from signing an agreement to submit their second payment claim.

The following examples illustrate how a rebate payment is calculated and the split-payment made:

EXAMPLE 1 –

An applicant submits an application under the Residential Land Rebate program for a 40 lot development and has evidence of eligible expenses incurred and paid totalling $600,000.

The development is in the LGA of Dorset (which has an affordable cap of $250,000).

Under the program, the applicant’s total claim amount is calculated at $600,000 ($15,000 per lot x 40 lots).

First payment

For their upfront 50 per cent payment; the applicant is eligible to $300,000. This amount represents 50 per cent of their total claim amount. This payment is made once an application has been approved and an agreement with the Crown signed.

Second payment

Within 18 months of signing their agreement, the developer has sold 30 of the 40 lot development and for a price under that of their affordable land cap. The other 10 lots were sold at an amount above that of their affordable land cap.

To be eligible for the second payment, the applicant must provide evidence that lots they are claiming were brought to market and sold under their affordable land cap.

For their second payment, the applicant submits evidence showing that each of the 30 lots they are claiming were sold for an amount under that of the affordable land cap (in this case, $250,000).

Under this scenario, the applicant is eligible to claim a second payment of $225,000.

The Department calculates the second payment using the following method:

IT = (CL ÷ TRL) × (GA ÷ 2)

IT = (30 ÷ 40) x ($600,000 ÷ 2)

where:

IT means the amount of the second payment.

TRL is the total number of residential lots being claimed at application.

CL is the number of lots sold at a price under that of their affordable land cap.

GA is the total claim amount.

In total, the applicant was able to claim $525,000 ($300,000 + $225,000).

EXAMPLE 2 –

An applicant submits an application under the Residential Land Rebate program for a 40 lot development and has evidence of eligible expenses incurred and paid totalling $400,000.

The development is in the LGA of Sorell (which has an affordable cap of $280,000).

Under the program, the applicant can claim up to $15,000 per lot. The total maximum amount that may be claimed is calculated at $600,000 ($15,000 per lot x 40 lots). However, as the applicant only has evidence to support a total claim amount of eligible costs totalling $400,000; the applicant can only claim $10,000 per lot.

First payment

For their upfront 50 per cent payment; the applicant is eligible to $200,000. This amount represents 50 per cent of their total claim amount. This payment is made once an application has been approved and an agreement with the Crown signed.

Second payment

Within 18 months of signing their agreement, the developer has sold 20 of the 40 lot development and for a price under that of their affordable land cap. The other 20 lots were sold at an amount above that of their affordable land cap or remain unsold.

To be eligible for the second payment, the applicant must provide evidence that lots they are claiming were brought to market and sold under their affordable land cap.

For their second payment, the applicant submits evidence showing that each of the 20 lots they are claiming were sold for an amount under that of the affordable land cap (in this case, $280,000).

Under this scenario, the applicant is eligible to claim a second payment of $100,000.

The Department calculates the second payment using the following method:

IT = (CL ÷ TRL) × (GA ÷ 2)

IT = (20 ÷ 40) x ($400,000 ÷ 2)

where:

IT means the amount of the second payment.

TRL is the total number of residential lots being claimed at application.

CL is the number of lots sold at a price under that of their affordable land cap.

GA is the total claim amount.

In total, the applicant was able to claim $300,000 ($200,000 + $100,000).

Eligibility

Applicants are encouraged to read the eligibility requirements prior to submitting an application.

Applicants must meet all the eligibility criteria to apply for a grant.

Prior to submitting an application under this program, applicants should note that:

  • applications submitted by a third party will not be accepted without evidence of permission to apply on behalf of the applicant in the application;
  • you may be asked to provide information or documentation to support your eligibility claims, either as part of the application process, or after you have submitted your application;
  • the information you provide may be subject to authenticity checks using third party software;
  • this program has limited funding. If funding is exhausted, not all eligible applications will receive a grant.

Eligibility criteria

Ownership

  • Applicants must be the owner(s) of the land which is the subject of the application, and their name must be on the title (please note, a contract of sale or any evidence other than a property search through the Land Titles Office will not be accepted as evidence of ownership).
  • All interested parties (that is all title holders) must be named as applicants.
  • Applicants that are natural persons must be aged over 18 years.

Eligible developments

  • ‘Lots’ are vacant parcels of land for which there is a single title arising from a subdivision. It does not include strata titles. The maximum number of lots for which a rebate can be claimed is 40.
  • A rebate may relate to multiple stages and/or developments, but cumulative funding may not exceed the maximum rebate allocation, of $15 000 per lot, for 40 lots.
  • Each rebate applicant is eligible for one rebate under the program.
  • Only one rebate will be issued per development approval (i.e., per council permit).
  • The development approval must not have been used for a prior approved rebate under the current program, or the preceding Residential Land Rebate program.
  • The development must be on Tasmanian land zoned residential, which is land where residential use is classed as ‘Permitted’ or ‘No Permit Required’.
  • To receive the second payment, the rebate lots must be brought to market (see definition of ‘bring to market’) in a process that results in the sale of the land for a price that is less than the affordable land cap as determined by State Growth. The process and resulting sale must be on commercial terms and at arm’s length from the developer.

Eligible costs

  • There are three eligible utilities for which the rebate can be claimed:
    • Tasmania’s electrical distribution network
    • Telecommunications networks, including the National Broadband Network
    • Reticulated water and sewerage infrastructure
  • Applicants will be required to identify the lots which are the subject of the rebate in their application, which will hereafter be referred to as ‘rebate lots’.
  • ‘Eligible costs’ are those costs which have already been incurred and paid in full, and were:
    • incurred on or after 1 July 2023; and
    • directly related to design, construction or installation of infrastructure connecting rebate lots to eligible utilities, including, but not limited to, costs levied by TasNetworks, TasWater, and NBN Co; and
    • connections up to the boundaries of the lots (infrastructure located on the rebate lots cannot be claimed); and
    • related to at least one, and up to three of the eligible utilities.
  • Applicants can apply for a total claim amount of up to $15 000 of eligible costs per rebate lot, for a maximum of 40 lots.

Program administration

  • Developers will be required to apply for their entire rebate for all rebate lots in one application. Once approved, no additional claims can be made.
  • To be eligible, the applicant must provide all information and evidence reasonably requested by State Growth. This includes evidence of a valid planning permit for each development from the appropriate local council/s.
  • Applications will only be accepted when they are complete and made using the approved form made available by State Growth.
  • The program will close on 31 July 2026 or when the program’s funding allocation has been fully allocated, whichever occurs first. No further applications will be accepted after this time. Applications will be assessed in order of receipt.
  • State Growth may consider the reputation of the applicants, and the conduct of the applicants in relation to any other grant programs managed by the Tasmanian Government, when assessing their eligibility for a grant.

Definitions

Bringing to market: State Growth defines ‘bringing to market’ to mean; advertising vacant land through a medium or process through which it is listed for sale, and more than one person can bid for that land, for a price that implies a level of commerciality (for more information refer Required evidence).

Affordable land cap: The affordable land cap is the amount, set out within the Grant Funding Agreement, over which the sale price of the rebate lot/s must not exceed.

This amount will be determined at the time of application and calculated based upon the region in which the lots are located. The inputs used to calculate the affordable land cap are subject to change by State Growth.

How to apply

Applications should be submitted online using SmartyGrants at https://stategrowthtas.smartygrants.com.au/ARLR

For assistance with using SmartyGrants, please see the applicant help guide.

Contact us to discuss any issue preventing you from using SmartyGrants to submit your application.

  1. Prepare: Read the program guidelines before starting your application. Check that you meet the eligibility criteria. To apply, you will need to provide valid planning permit/s for all the lots you intend to claim for, basic identifying information about yourself and your property, and evidence you have paid the costs you are claiming for. Make sure you have all the required evidence ready before you apply.

Applications that do not meet all the eligibility requirements and/or do not include all the required evidence will not be accepted.

Download the Affordable Residential Land Rebate Program Guidelines (PDF 418.1 KB)

  1. Start: When you are ready, use the ‘Apply now online’ link on our website. This will take you to State Growth’s grant portal. Sign in or create an account, save your login information for later and complete your application.
  2. Confirm: Ensure all information and documentation is accurate and attached. Rebates are given in order of receipt. Remember that incomplete applications will not be assessed or reserve your place.
  3. Submit: You will receive an email notification after you submit your application. Keep this notification as confirmation of your submission.
  4. Assessment: Your application will be assessed by State Growth. You may be contacted if further information is required. You will be notified of the outcome within 21 days of making a complete application.
  5. Notification: Successful applicants will be made an offer which you will need to sign. By signing you will be agreeing to meet the requirements of the program. Once signed, return the agreement using the instructions provided with your formal offer. Payment of the first instalment will be made after the signed agreement is returned and countersigned by the State Growth representative.

You may be asked to provide additional information or documentation about your application after you have submitted it.

You must provide this information within three working days, unless otherwise advised. Failure to provide the information within the timeframe may result in the application being unsuccessful.

Affordable land cap

Under the program guidelines, an applicant will only be eligible for their second payment if they can demonstrate that rebate lots have been brought to market and sold for an amount under that of an affordable land cap and within 18 months from the signing of an agreement.

Applicants must provide this evidence within the prescribed timeframe and can only receive the second payment in a single instalment.

What is the affordable land cap for my LGA?

All Tasmanian Local Government Areas (LGA) have been classified into one of four groups:

  • Greater Hobart Area
  • Rural
  • Urban; and
  • Urban Fringe.

These groups have been created by analysing average median land prices, and other characteristics such as location, and the scope and scale of residential developments commonly delivered in these areas.

State Growth has taken care to classify each LGA to the closest match for the available price data and has considered other characteristics to ensure that each classification is reasonable and achieves the aims of the program.

As the program is designed to support affordable land, some new developments, such as urban infill or other premium locations, will be less likely to achieve the land cap as a result.

How is the affordable land cap applied?

When submitting an application, the affordable land cap will be automatically input. This amount will be determined at the time of application and calculated based upon the region in which the lots are located.

How much is the affordable land cap?

The following table details each LGA, its classification and calculated affordable land cap.

LGAClassificationAffordable Land Cap ($)

Glenorchy City Council

Greater Hobart

$380,000

Clarence City Council

Greater Hobart

$380,000

Brighton Council

Greater Hobart

$380,000

Kingborough Council

Greater Hobart

$380,000

Hobart City Council

Greater Hobart

$380,000

West Coast Council

Rural

$250,000

Northern Midlands Council

Rural

$250,000

King Island Council

Rural

$250,000

Central Highlands Council

Rural

$250,000

Circular Head Council

Rural

$250,000

Tasman Council

Rural

$250,000

Southern Midlands Council

Rural

$250,000

Flinders Council

Rural

$250,000

Dorset Council

Rural

$250,000

Kentish Council

Rural

$250,000

Break O'day Council

Rural

$250,000

Glamorgan-Spring Bay Council

Rural

$250,000

Burnie City Council

Urban

$310,000

West Tamar Council

Urban

$310,000

Devonport City Council

Urban

$310,000

Launceston City Council

Urban

$310,000

Waratah-Wynyard Council

Urban Fringe

$280,000

Derwent Valley Council

Urban Fringe

$280,000

George Town Council

Urban Fringe

$280,000

Latrobe Council

Urban Fringe

$280,000

Huon Valley Council

Urban Fringe

$280,000

Meander Valley Council

Urban Fringe

$280,000

Sorell Council

Urban Fringe

$280,000

Central Coast Council

Urban Fringe

$280,000

NOTE - the inputs used to calculate the affordable land cap are subject to change by State Growth as new data is released.

Required evidence

The application form will require you to provide certain information along with documentary evidence to support your rebate claim.

It is important that the evidence you provide meets the required standard, otherwise your application will be considered incomplete.

Below is advice on the requirements for:

  1. Planning Permits / Development Applications
  2. Evidence of costs incurred and remittance advice.
  3. Bring lots to market and affordable land cap.

Please note that State Growth reserves the right to require information additional to that shown below – these are minimum requirements only.

Planning Permits (Development Application)

You will need to submit a valid, approved planning permit from your local council for the rebate lots you are claiming. Your permit must show:

  • The address and/or the location of your subdivision.
  • The total number of lots permitted.
  • Council approval for the subdivision, and any conditions.
  • The date the permit was approved.
  • The name of the council.

Evidence of costs incurred and remittance advice

When submitting an application, you will need to provide evidence in the form of:

  • tax invoices detailing all eligible costs for which you are seeking a rebate; and
  • remittance advice showing that eligible costs being claimed have been paid in full.

This evidence must show:

  • That the document is intended to be a tax invoice.
  • The seller’s identity.
  • The seller’s Australian Business Number (ABN).
  • The date the invoice was issued.
  • A description of the works or services undertaken.
  • The amount charged (itemised and with the relevant items highlighted or otherwise identified for which you are claiming).
  • That the amount has been paid in full; either on the invoices or separately (such as a bank statement or receipt).
  • The GST amount.

NOTE - failure to supply this evidence will result in an application being deemed incomplete and will be referred back to the applicant to address.

Bringing lots to market and affordable land cap

An applicant will only be eligible for their second payment if they can demonstrate that rebate lots have been brought to market and sold for an amount under that of an affordable land cap and within 18 months from the signing of an agreement.

Bringing lots to market

State Growth defines ‘bringing to market’ to mean; advertising vacant land through a medium or process through which it is listed for sale, and more than one person can bid for that land, for a price that implies a level of commerciality.

Examples of suitable evidence includes sole agency agreement, online real estate listings or similar.

Affordable land cap

The affordable land cap is the amount, set out within the Grant Funding Agreement, over which the sale price of the rebate lot/s must not exceed.

This amount will be determined at the time of application and calculated based upon the region in which the lots are located. The inputs used to calculate the affordable land cap are subject to change by State Growth.

When submitting a request for second payment, an applicant will need to provide evidence they have sold their rebate lots for an amount under that of their affordable land cap. Specifically, a signed sales contract for the lot showing that it was sold for a purchase price under the affordable land cap for the development, as shown in your grant agreement and at the time of application.

Further information on the calculation of the affordable land cap is available on this website.