In short: Tasmania is one of the few states where a first home buyer pays no duty on an established home: the exemption runs to $750,000. After PR, a Nepali family can combine that with the First Home Guarantee (5% deposit, no LMI, cap $700,000 in Hobart and $550,000 elsewhere) or claim the $10,000 First Home Owner Grant on a new build.
Key takeaways
- PR removes your foreign-person status: no FIRB, no 8% foreign investor duty surcharge, and the federal established-dwelling ban (to at least 30 June 2029) no longer applies.
- Tasmanian first home buyers pay no duty on an established home up to $750,000.
- The FHOG is $10,000 for a new build.
- The Guarantee caps are $700,000 for Hobart and $550,000 for the rest of Tasmania, with no income cap.
- Hobart's housing stock is old and hilly; building and pest reports and lender valuations matter more here than in a new estate.
Tasmania's Nepali community grew almost entirely through the regional visa pathway. Hobart and Launceston were designated regional for the 489 and 491 visas, and thousands of Nepali students and skilled workers moved south for the extra points, then stayed. Many are now converting to the 191 permanent visa, which is exactly the moment this guide is written for. Tasmania's rules favour established homes, which is the opposite of South Australia and worth understanding before you decide what to buy.
Tasmania's first home buyer rules at a glance
| Scheme | Rule at the time of writing | Notes |
|---|---|---|
| First Home Guarantee | 5% deposit, no LMI, no income cap; cap $700,000 Hobart, $550,000 rest of Tasmania | Citizens and PRs; owner-occupiers; no property owned in Australia in the last 10 years |
| Duty, established home | Nil for first home buyers up to $750,000 | Residence conditions apply |
| First Home Owner Grant | $10,000 for a new build | New homes only |
| Foreign investor duty surcharge | 8% | Foreign persons only; PRs exempt |
| Established-dwelling ban | Foreign persons blocked until at least 30 June 2029 | Not applicable to PRs, NZ citizens or spouses of citizens and PRs |
Confirm the state rules with the State Revenue Office of Tasmania and the Guarantee with Housing Australia.
Worked example: a $600,000 house in Hobart's northern suburbs
A Nepali couple, a registered nurse and a chef, both granted the 191 permanent visa in May after three years on a 491, buy an established three-bedroom weatherboard house in Hobart's northern suburbs for $600,000 using the First Home Guarantee.
| Item | Amount |
|---|---|
| Purchase price | $600,000 |
| Deposit (5%) | $30,000 |
| Loan | $570,000 |
| Duty | $0 (first home buyer, established home under $750,000) |
| LMI | $0 (Guarantee) |
| Conveyancing, building and pest, registration | Roughly $3,000 to $5,000 |
| Monthly repayment, for illustration at 6.00% p.a. over 30 years | About $3,417 |
The comparison worth making in Tasmania is with the mainland. The same couple buying a $600,000 established house in Adelaide would pay ordinary duty; in Perth they would pay a concessional amount; in Hobart they pay nothing. Combined with the Guarantee, their total cash to settle is about $35,000. If they preferred to build in one of the newer estates south of Hobart, the $10,000 grant would apply instead, though the build would need a construction loan and the total must stay under the $700,000 Guarantee cap.
Two Hobart-specific cautions. Older timber homes on sloping blocks sometimes value below contract price, and a low valuation on a 95% loan means finding extra cash. And heating costs are real in a Tasmanian winter; lenders will not price this in, but your budget should. Use the mortgage repayment calculator and borrowing power calculator to set a ceiling before inspections.
Where Nepali families settle in Tasmania
Hobart's Nepali community is concentrated in the northern suburbs (Glenorchy, Moonah and surrounds) and the eastern shore, close to the hospitals, aged-care homes and the university campuses that employ many families. Launceston has a smaller but well-organised community in the northern suburbs near the hospital and university. Nepali grocers and momo restaurants have opened along the main strips in both cities, and Hindu and Buddhist gatherings for Dashain, Tihar and Buddha Jayanti are organised through the Tasmanian Nepali associations, which also run football tournaments and Nepali language classes.
The whole state is regional for migration purposes, so almost every Nepali household here has come through the 489, 491 or 190 pathway, and the associations are unusually good at sharing information about the 191 transition. Our Hobart and Tasmania pages have area-by-area notes.
Lender and document notes for new PR holders in Tasmania
- Status. Passport and 191 (or other PR) grant notice; the lender checks VEVO. If you are still on a 491, you are a temporary resident: no established homes, FIRB for new ones, and no Guarantee. See buying as a temporary resident.
- Income history. The 491-to-191 transition requires three years of regional residence and taxable income at or above the threshold, which conveniently means you already have the two years of income history lenders like. Bring the ATO income statements you used for the 191 application.
- Employment type. Nursing, aged care and hospitality dominate. Shift penalties and overtime are counted at 80% to 100% depending on the lender; casual hospitality income needs six to twelve months.
- Genuine savings. 5% held for three months with most lenders; rent paid on time may substitute.
- Source of funds. Nepal Rastra Bank does not permit capital transfers from Nepal for buying property abroad, and lenders require a lawful, documented source for every deposit dollar. Australian savings, gifts from family in Australia with a gift letter, and NRN-compliant funds are accepted; get legal advice on anything else.
- Property condition. Lenders may ask for a building report on older homes, and some restrict lending on properties with unapproved additions or poor access. Get the building and pest report before finance approval, not after.
- Buffer. Lenders assess at your rate plus 3 percentage points; regular remittances count as living expenses.
The first home buyer loans page explains the steps and the documents checklist lists what to gather for pre-approval.
Frequently asked questions
Why does Tasmania give duty relief on established homes but not new ones?
Tasmania's first home buyer duty concession was designed for existing housing, and new builds are supported through the $10,000 grant instead. For a buyer, the practical effect is that a $600,000 established home costs nothing in duty while a $600,000 new build costs duty on the land (typically a modest amount) but earns the grant. Compare the two totals rather than assuming new is cheaper.
Can I use the Guarantee in Launceston or Devonport?
Yes. Outside Hobart the Guarantee cap is $550,000, which covers most houses in Launceston, Devonport and Burnie. Inside Hobart the cap is $700,000. The duty exemption to $750,000 applies state-wide.
My 191 is still processing. Can I buy now on a 491?
Only a new home or vacant land, with FIRB approval and the 8% foreign investor surcharge, and without the Guarantee or the duty exemption. For most families the sensible path is to get everything ready (savings, documents, pre-approval in principle) and settle after the 191 is granted. Ask a MARA-registered agent about your expected timing.
Do I need to stay in Tasmania after buying?
The duty exemption and the grant require you to live in the home for the residence period. Beyond that, nothing stops you selling and moving later, although selling within a year or two rarely recovers buying and selling costs. Talk to a migration agent about any residence conditions attached to your visa.
Talk to GNT Finance
GNT Finance arranges home loans across Tasmania by phone, video and e-signature from our Melbourne office, in English, Nepali or Hindi. We understand the 491-to-191 journey and how to present it to a lender. Book a free consultation or call 0426 403 703; our home-loan service is at no cost to you in most cases. See also Australia-wide, Sydney and Victoria.
This is general information, not migration, legal, tax or credit advice. Migration rules change often — confirm with a registered migration agent (MARA) or the Department of Home Affairs. Grant, duty and Guarantee figures are as at the time of writing; confirm them with the State Revenue Office of Tasmania and Housing Australia.
Written by Gorakh Timilsina
Founder, CEO & Senior Mortgage Consultant at GNT Finance. Gorakh started as a broker assistant, spent years as a senior credit officer assessing loan applications, and now helps Melbourne families get the right loan approved. English, Nepali and Hindi spoken.