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ABC News
3 days ago
- Business
- ABC News
Tasmanian program designed to encourage sale of affordable land yet to deliver any after 10 months
A Tasmanian government rebate program designed to encourage the sale of affordable land lots is yet to deliver any result. In the 10 months after applications opened for the Residential Land Rebate Program, seven successful applicants have been allocated $682,505, according to the State Growth Department. But, as of May 20, zero land lots have been sold. Developers who apply to the program are eligible for up to $15,000 per lot of affordable land, for a maximum of 40 lots. The funds are intended to help cover development costs, including internet, water and electricity connections. The program opened in July 2024 and was backdated to July 1, 2023, with developers given 18 months to complete the sale. Round one of the program — which offered $10,000 per lot in 2023 — was a success, with more than 3,000 lots of land delivered. It prompted the liberals to pledge a $10 million extension at last year's state election. Housing Minister Felix Ellis said developers had 18 months to bring the lots to market. "The Residential Land Rebate Scheme is one of the many ways our government is boosting housing and land supply across Tasmania," Mr Ellis said. Half the funds are paid at the start to support development, with the remainder given once proof is provided that the land was brought to market, and sold below an affordable land funding cap — an amount that varies between council areas. An example on the program's web page appears to indicate that if lots of land are sold for an amount above the land cap, they do not need to return any funding. It says an applicant who applied for 40 lots would receive $300,000 in the first instalment ($7,500 per lot). If 30 were sold below the funding cap, they would receive another $225,000 ($7,500 per affordable lot), with no mention of the initial funds needing to be returned for the other 10. It also does not state whether the funds must be returned for unsold properties. The program's guidelines state that applicants may be required to return some, or all, of the funds if an applicant does not "complete the activities required under the funding agreement' and some other circumstances. Labor's finance spokesperson Luke Edmunds said the fund was "clearly not meeting its objectives", and that it was "concerning" developers appeared not to have to pay the money back. "What guarantees can the government give that this isn't a case of taxpayer money being thrown into a black hole?" Mr Edmunds said. Promoting the sale of affordable land is part of the government's strategy to tackle homelessness. Each lot of affordable land sold also contributes to the state government's pledge to deliver 10,000 social and affordable homes by 2032. It has previously received criticism for including existing rental properties and vacant land in that target, but Mr Ellis has said land "unlocks" the home. A little over three years after announcing the 10,000 homes goal, the state government has delivered 4,381 homes, including 411 plots of affordable land. In that time, the social housing wait list has grown from 4,405 to 5,094. Mr Ellis said the government was "full steam ahead" on delivering the 10,000 homes goal, and that the recent state budget allocated half a billion dollars over the next four years "to get a roof over the heads of Tasmanians". The caps for what is classed as "affordable" varies depending on the location of the land. Affordable land within Greater Hobart, including the Kingborough, Clarence and Brighton council areas is capped at $380,000. Land in "urban" areas, such as Burnie, Devonport, West Tamar and Launceston, are considered affordable up to $310,000. In "urban fringe" areas, including Latrobe, George Town, Waratah-Wynyard and the Huon Valley, the affordable land cap is $280,000. The maximum price for affordable land in rural areas — including Dorset, Circular head, Kentish and the Northern Midlands — is $250,000.
ABC News
22-05-2025
- Business
- ABC News
Hobart's urban growth boundary extended to allow fast-growing areas to continue to expand
Some of the fastest-growing areas near Hobart could double in size after the region's urban growth boundary was extended, allowing for more suburban development. Housing Minister Felix Ellis approved the extension of the boundary by 615 hectares, including areas to the outer north, south and east of the city. The largest extension was 176 hectares to the immediate north of the Glebe Hill housing estate at Rokeby, on Hobart's eastern shore, potentially allowing for more than 3,100 dwellings to be added. The changes also include 166 hectares to the south-east of Sorell, south of the Arthur Highway bypass, for close to another 3,000 dwellings. The urban growth boundary extension allows for greater residential rezoning but is subject to all planning approvals. Mr Ellis said the changes could provide 10,000 additional homes. Other main changes include 73 hectares at Richardsons Road in Sandford, 36 hectares at Brighton Road in Brighton, and 33 hectares on the Channel Highway at Margate. In its submission as part of the process, Clarence City Council was broadly supportive — including of the Rokeby extensions — but had concerns with the Sandford urban growth extension. It was one of two land parcels in the government's list that were identified "through dialogue with a developer", the other being at Mannata Road in nearby Lauderdale, which was also approved. The council's submission, signed by chief executive officer Ian Nelson, described the inclusion of the Sandford land as "opportunistic and not strategically justified". "It does not promote the consolidation of development within a contained area, rather, it encourages unrestrained urban sprawl in a southerly direction on the South Arm Peninsula," the submission reads. The land is subject to overlays for coastal inundation, potential contaminated land, flood-prone hazard, waterway protection and landslip hazard. Nik Masters and Dean Richards also provided a submission "on behalf of the project team" for the potential Sandford development. They described the site as being "thoroughly assessed, with extensive independent reports and modelling already completed" as part of a master plan. "Including 52 Richardsons Road within the [urban growth boundary] would enable short-term housing development on serviced land free from flood or inundation overlays," the submission reads. Under the urban growth boundary changes, Sorell could expect significant additional residential development proposed in the coming decades. The land south of the Arthur Highway bypass is yet to be served by TasWater. Mayor Janet Gatehouse said development in the area was "not going to happen overnight", and she would like to see it progress in a "sustainable, holistic fashion". "Council is trying to manage it in the most holistic way — considering environmental and community interests, and what's best for new residents," she said. Sorell has been promised a Medicare urban care clinic, its public school has recently expanded with room for further expansion, and it has a park-and-ride service for public transport. Cr Gatehouse said these services would assist in the area's continued growth, and she wanted to ensure that Sorell's rural areas could also receive adequate services. Most of the changes to the urban growth boundary were identified as part of a review of the Southern Tasmania Regional Land Use Strategy, which is ongoing. Clarence City Council described changing the urban growth boundary before this review is finished as "premature". The Greater Hobart Plan, released in 2022, stated that the previous boundary could provide for 34,000 dwellings through infill development to accommodate for the region's estimated population growth over the next 25 years. It did not recommend changes to the urban growth boundary. Other changes to the boundary, approved by Mr Ellis, include 13 hectares at Risdon Vale, 18 hectares at Gagebrook, 24 hectares at Old Beach and a further 31 hectares at Sorell.
