3 days ago
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.
