Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Federal government to waive Tasmania’s housing debt

Federal government to waive Tasmania’s housing debt

The federal government has agreed to waive Tasmania’s $157.6-million housing debt to address continuing housing affordability issues within the state.

The Australian government has agreed to waive Tasmania’s housing debt to the Commonwealth in an attempt to address housing affordability and homelessness issues in the southern state.

Minister for Housing and Assistant Treasurer Michael Sukkar announced that a total of $157.6 million in outstanding Commonwealth loans will be waived in recognition of the unique challenges with housing affordability and homelessness faced by Tasmania.

Advertisement
Advertisement

The Tasmanian government will reportedly save $230.2 million in total principal and interest repayments over the life of the loan term and will be required to redirect these funds into addressing the state’s housing issues.

This includes state-funded programs that improve housing supply, increase access to social housing, and reduce homelessness across Tasmania.

The state will reportedly be required to ensure local government planning and zoning reforms that support new housing supply consistent with future population and economic growth projections across the state.

Additionally, the Tasmanian government will be required to publicly report in its annual budget papers how the funds are being utilised and key outcomes being undertaken.

Minister Sukkar recognised the decision as another component of an ongoing commitment to addressing the housing crisis in Tasmania.

“The Morrison and Hodgman governments have worked hand in hand to support the growth ambitions of Tasmania. Waiving this loan will support the Tasmanian government’s efforts to reduce homelessness, increase access to social housing, and improve housing supply across the state,” Minister Sukkar said.

“This of course builds on our existing commitment to housing and homelessness through the Hobart City Deal, the Launceston City Deal and $34 million of funding for Tasmania under the National Housing and Homelessness Agreement.”

Roger Jaensch, the Hodgman government Minister for Housing, commented: “I am very pleased we have worked together to achieve the best possible outcome for our great state and to address this challenging Tasmanian issue.

“Wiping the debt will save up to $15 million annually over coming years in debt and interest payments, which will be used instead to build more social housing for Tasmanians in need. We estimate this could mean around 80 more houses for people on the social housing waiting list across Tasmania, each year,” Mr Jaensch said.

“This is a marvellous result for all Tasmanians and will enable us to build more homes in addition to our Affordable Housing Strategy, underpinned by an investment of almost $200 million over eight years, the largest ever state government investment into affordable housing in Tasmania’s history.” 

[Related: Supply and demand ‘imbalance’ to trigger nationwide price boost

Federal government to waive Tasmania’s housing debt
Michael Sukkar
mortgagebusiness

Hannah Dowling

Hannah Dowling is a cadet journalist for mortgage business, the leading source of news, opinion and strategy for professionals working in the mortgage industry.

Prior to joining the team at Mortgage Business, Hannah worked as a content producer for a podcast catering to property investors. She also spent 6 years working in the real estate sector at a local agency. 

Hannah graduated from Macquarie University with a Bachelor of Media and Journalism. 

You can email Hannah at: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Latest News

The diversified financial services business has partnered with an international alternative asset manager to form a “formidable new fundin...

“Detailed” consultations are due to begin with lenders regarding their participation in the federal government’s First Home Loan Depos...

The total value of home loans approved for first home buyers increased by over 20 per cent in July, according to an analysis of the latest A...

FROM THE WEB
podcast

LATEST PODCAST: New CEO and court cases

Do you think the mortgage market will see more consolidation this year?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.