Property Update: Grants, duty and the end of paper titles

State Revenue Office – Purchaser duty and grants

There are important updates for first home buyers in Tasmania, including changes to duty concessions and to the First Home Owner Grant (FHOG), which may affect the eligibility of purchasers and entitlements depending on the timing of the relevant transaction.

Currently:

• first home buyers of established homes can obtain a full duty exemption for the purchase of property under $750,000; and
• a purchaser who has not previously received a duty exemption or concession who purchases an apartment or unit ‘off the plan’ with a total value under $750.000.00, is able to obtain a duty concession for a 50 per cent reduction of property transfer duty.

After 30 June 2026, this exemption and concession come to an end.

The full exemption for first home buyers of established homes will not be available for any transaction that is completed after 30 June 2026. That includes circumstances where the purchase contract was entered into prior to 30 June 2026.

The concession for ‘off the plan’ purchases will be available to purchasers who enter their purchase contract on or before 30 June 2026 (provided the transfer is completed before 30 June 2031).

From 1 July 2026, the FHOG will reduce to $20,000 (subject to the passage of legislation). For eligible applicants to access the current higher grant arrangements, the eligible transaction must commence on or before 30 June 2026. Commencement of the transaction is considered to be when the contract is entered into or when the laying of foundations has commenced (for owner-builders).

Land Titles Office – Removal of paper titles

Tasmania is continuing the transition to a fully electronic conveyancing and land dealings system, under which physical Certificates of Title will no longer be used. Instead, the electronic land register will become the definitive record of ownership and interests in land.

How the system will change

Under the new regime:

• property dealings will be completed electronically via an approved online platform; and
• documents such as Transfers and Mortgages will no longer need to be physically lodged with the Land Titles Office (LTO), as lodgement and registration will occur automatically in real time.

Impact on physical titles

Under the current paper-based system, possession of the physical Certificate of Title to a property can provide a degree of practical control, as the title is typically required to register most dealings (including a Transfer or Mortgage). This can be used as leverage in certain arrangements and is particularly relevant in the context of unregistered mortgage arrangements.

Unregistered Mortgages – increased risk

An unregistered mortgage arises where a landowner grants a mortgage that is not recorded on the title. Once the system becomes fully electronic:

• physical titles will no longer have any practical utility; and
• lenders relying on unregistered mortgages will lose the informal protection that possession of the title has previously provided.

As a result, an unregistered lender may be exposed to significant risk, including:

• the property being sold without their knowledge; or
• other interests being registered ahead of their claim.

Protecting your interest

To mitigate these risks, lenders should ensure their interests are formally recorded. In most cases, this means:

• registering a Mortgage on the title (where permitted under the loan agreement); or
• at a minimum, lodging a Caveat to notify third parties of the lender’s interest and to protect against the mortgagor dealing with the property contrary to the lender’s interests.

Land Titles Office – Update to forms

The LTO is continuing to publish new paper-based forms for use, consistent with the requirements under electronic conveyancing.

The new forms no longer permit signing by the party themselves and are to be signed by each party’s Subscriber. This means that, for most parties to transactions, their lawyer will sign the LTO form on their behalf.

The prior approved LTO forms for Transfers, Applications to Correct or Change Name and Applications to Note Marriage or Revert to Maiden Name are now no longer able to be used and will ordinarily be rejected for registration by the LTO.

New forms have also been approved for Mortgages and Discharges of Mortgages. The transition period for the use of these new forms has recently been extended to 31 July 2026. On and after 1 August 2026, only new forms for Mortgage and Discharge of Mortgage will be accepted for lodgment, except where Discharges of Mortgage have been prepared, executed and dated before 31 July 2026.

If you have any questions or concerns about how these changes impact you, please reach out to our Property team for further assistance.