With Tasmania's rental vacancy rate at just 1.2% and median house prices exceeding $600,000, housing has become the defining issue for many voters. Here's how every major party plans to tackle the crisis, from ambitious build targets to controversial rent caps and first-home buyer support.
Housing Build Targets to 2030 by Party
1. Build targets – Labor 40k homes (35% social); Liberal 30k (20% affordable)
Labor's Ambitious Social Housing Expansion
Labor's commitment to build 40,000 homes by 2030 represents the most aggressive housing policy in Tasmania's history, with 14,000 designated as social housing—tripling the current public housing stock.
Labor's Detailed Breakdown
- Total target: 40,000 homes by 2030 (8,000 annually from 2027)
- Social housing: 14,000 units (35% of total)
- Affordable housing: 8,000 units (20% of total)
- Market housing: 18,000 units (45% of total)
- Geographic split: 60% Greater Hobart, 25% Launceston, 15% regional
- Investment required: $2.8 billion in state funding and partnerships
Liberal's Market-Led Approach
Liberal's 30,000 home target emphasizes private sector delivery with government facilitation, focusing on planning reform and infrastructure investment to unlock development.
Liberal's Strategy
- Total target: 30,000 homes by 2030 (6,000 annually from 2026)
- Affordable housing: 6,000 units (20% of total)
- Market housing: 24,000 units (80% of total)
- Delivery method: Private sector with government incentives
- Infrastructure investment: $500 million in enabling infrastructure
- Planning reforms: Fast-track approvals for developments over 50 units
Feasibility Analysis
The Tasmanian Planning Commission estimates current construction capacity at 4,000-5,000 homes annually. Both targets require significant industry expansion:
- Skilled worker shortage: Need 2,000 additional construction workers
- Material supply: Increased demand could drive up construction costs
- Land availability: Requires rezoning and infrastructure investment
- Financing: Labor's approach requires substantial government borrowing
Social Housing Share of Total Build Targets
- Social Housing
- Private Housing
Greens' Rent Control Policy
The Greens propose limiting rent increases to 2% annually, arguing this provides immediate relief for the 35% of Tasmanians who rent their homes.
Rent Cap Implementation Details
- Annual limit: 2% maximum rent increase per year
- Exemptions: Major renovations or property improvements
- Enforcement: Residential Tenancy Commissioner oversight
- Penalties: Fines up to $10,000 for landlords exceeding limits
- Review mechanism: Annual assessment of cap effectiveness
Annual Rent Increase Caps by Party
Opposition from Other Parties
Labor, Liberal, and JLN all oppose rent caps, arguing they reduce rental supply and discourage investment:
- Labor position: Focus on supply-side solutions rather than price controls
- Liberal stance: Market-based solutions with investor incentives
- JLN approach: Support for renters through other mechanisms
Economic Evidence
International research on rent controls shows mixed results:
- Short-term benefits: Immediate affordability relief for existing tenants
- Long-term risks: Reduced rental supply and property maintenance
- Berlin example: Rent freeze led to reduced rental listings
- New York experience: Rent stabilization with ongoing market distortions
Current Rent Increase Reality
Without rent caps, Tasmania has experienced:
- 2023-2024: Average rent increases of 15%
- Hobart houses: Median rent rose from $420 to $480 per week
- Regional areas: Some areas saw 20%+ increases
- Tenant displacement: Many forced to move due to unaffordable increases
3. Social housing – Labor triples stock; Greens 20k units; Liberal minimal
Labor's Social Housing Revolution
Labor's plan to build 14,000 social housing units would triple Tasmania's current stock of approximately 4,800 properties, representing a fundamental shift in housing policy.
Labor's Social Housing Strategy
- New builds: 14,000 additional social housing units
- Current waiting list: 3,000 households (would be eliminated)
- Target demographics: Low-income families, elderly, disabled, Indigenous
- Management model: Mix of public and community housing providers
- Maintenance fund: $200 million for ongoing upkeep
- Employment impact: 800 ongoing jobs in social housing sector
Greens' Alternative Approach
The Greens propose 20,000 social housing units over 10 years, funded through wealth taxes and federal partnerships:
- Build target: 20,000 units (higher than Labor's 14,000)
- Funding mechanism: Land tax on vacant properties, wealth taxes
- Community housing focus: Non-profit providers preferred
- Environmental standards: All units must meet 7-star energy rating
Liberal's Limited Commitment
Liberals focus on enabling private and community sector delivery rather than direct government construction:
- Direct builds: Minimal government construction
- Community housing: Support for non-profit providers
- Land release: Government land for affordable housing projects
- Planning incentives: Density bonuses for affordable housing inclusion
Current Social Housing Crisis
Tasmania's social housing shortage is severe:
- Waiting list: 3,000 households (average wait 2-3 years)
- Priority cases: 800 households in urgent need
- Homelessness: 1,600 people experiencing homelessness
- Overcrowding: 15% of social housing tenants in overcrowded conditions
4. Planning reform – Liberal fast-track; Labor community consultation
Liberal's Fast-Track Approach
Liberals propose streamlining planning approvals to accelerate housing delivery, particularly for larger developments that can achieve economies of scale.
Liberal Planning Reforms
- Fast-track approvals: Developments over 50 units processed within 90 days
- Code assessable: Standard housing developments avoid discretionary assessment
- State assessment: Major projects bypass local council processes
- Digital systems: Online lodgment and tracking for all applications
- Performance targets: Planning authorities must meet statutory timeframes
- Appeal limitations: Reduced third-party appeal rights for compliant developments
Labor's Balanced Approach
Labor supports planning reform but emphasizes community consultation and environmental protection:
- Streamlined processes: Faster approvals while maintaining community input
- Strategic planning: Better coordination between state and local government
- Infrastructure coordination: Ensure services match development
- Environmental standards: Maintain protection for sensitive areas
- Community consultation: Meaningful engagement in planning decisions
Current Planning Delays
The Tasmanian Planning Commission data shows:
- Average approval time: 180 days for discretionary developments
- Complex projects: 12-18 months for major developments
- Appeal rates: 15% of approvals face third-party appeals
- Refusal rates: 8% of housing applications refused
Industry Perspective
The Urban Development Institute of Australia Tasmania identifies planning delays as a major constraint:
- Planning uncertainty adds 10-15% to development costs
- Delays reduce developer confidence in new projects
- Complex approval processes favor large developers over smaller builders
- Infrastructure coordination issues cause project delays
5. Build-to-rent – JLN champions; others cautious on tax incentives
JLN's Build-to-Rent Advocacy
The Jacqui Lambie Network strongly supports build-to-rent developments, arguing they provide stable rental housing while attracting institutional investment.
JLN's Build-to-Rent Policy
- Tax incentives: Reduced land tax for build-to-rent developments
- Planning support: Fast-track approvals for build-to-rent projects
- Minimum tenancy: 3-year lease terms to provide tenant security
- Professional management: Institutional ownership and management
- Target locations: Transit-oriented developments near employment
- Affordability component: 20% of units at below-market rents
Other Parties' Positions
- Labor: Supportive but cautious about tax concessions
- Liberal: Open to build-to-rent but prefer market-driven approach
- Greens: Support if combined with strong tenant protections
Build-to-Rent Benefits
- Rental supply: Purpose-built rental housing increases stock
- Professional management: Better maintenance and tenant services
- Tenure security: Longer lease terms reduce tenant turnover
- Institutional investment: Attracts superannuation and pension funds
- Design quality: Purpose-built rentals often higher quality
Current Build-to-Rent Market
Tasmania's build-to-rent sector is minimal compared to other states:
- Existing projects: Less than 500 build-to-rent units statewide
- Pipeline projects: 1,200 units in planning or construction
- Investor interest: Growing but limited by tax treatment
- Comparison: NSW has 15,000+ build-to-rent units planned
6. First-home grant – Lib $20k new builds; Labor $30k < $600k; Greens scrap; JLN $25k
Liberal's New Build Focus
Liberal's $20,000 first-home buyer grant applies only to new constructions, aiming to stimulate building activity while supporting first-home buyers.
Liberal Grant Details
- Grant amount: $20,000 for new builds only
- Property value cap: $750,000 maximum
- Income limits: $120,000 for singles, $180,000 for couples
- Residency requirement: Must live in property for 12 months
- Construction stimulus: Encourages new housing supply
- Stamp duty concession: Additional savings on government charges
Labor's Broader Eligibility
Labor's $30,000 grant applies to both new and existing homes under $600,000, providing more options for first-home buyers in a tight market.
Labor Grant Structure
- Grant amount: $30,000 for homes under $600,000
- Property types: New builds and existing homes eligible
- Income limits: $100,000 for singles, $160,000 for couples
- Regional bonus: Additional $5,000 for purchases outside Hobart/Launceston
- Shared equity option: Government co-investment for eligible buyers
Greens' Opposition
The Greens oppose first-home buyer grants, arguing they inflate house prices and benefit sellers more than buyers:
- Price inflation: Grants get capitalized into higher house prices
- Seller benefit: Vendors capture much of the grant value
- Alternative approach: Focus on social housing and rent controls
- Equity concerns: Grants favor those who can already access credit
JLN's Targeted Support
JLN proposes a $25,000 grant with strict income caps to target genuine first-home buyers:
- Grant amount: $25,000 for all property types
- Income caps: $80,000 for singles, $120,000 for couples
- Asset test: Excludes buyers with significant other assets
- Local preference: Tasmanian residents for 2+ years
Market Impact Analysis
Economic research on first-home buyer grants shows:
- Price effect: Grants typically increase prices by 60-80% of grant value
- Timing impact: Bring forward purchases but don't increase long-term ownership
- Market distortion: Can create artificial demand spikes
- Effectiveness: Most beneficial in stable or declining markets
7. Public land release – all parties support, differ on affordable housing quotas
Consensus on Land Release
All major parties agree on releasing government land for housing development, but differ on how much should be reserved for affordable housing.
Labor's Land Release Strategy
- Land identification: 500 hectares of government land for housing
- Affordable housing quota: 30% of released land for affordable housing
- Social housing sites: 15% specifically for social housing
- Infrastructure investment: $300 million for roads, water, power
- Community facilities: Schools, parks, and services included
- Staged release: Coordinated with infrastructure delivery
Liberal's Market-Led Release
- Land volume: 400 hectares released over 4 years
- Affordable housing quota: 15% minimum requirement
- Market pricing: Land sold at market value to maximize revenue
- Developer incentives: Density bonuses for affordable housing inclusion
- Infrastructure funding: Developer contributions for services
Greens' Environmental Focus
- Sustainable development: High environmental standards for all releases
- Affordable housing quota: 40% of released land
- Public transport: Land release tied to transit infrastructure
- Green building standards: Mandatory sustainability requirements
- Community ownership: Community land trusts for affordable housing
JLN's Regional Focus
- Regional priority: 50% of land release outside Greater Hobart
- Local employment: Land release tied to job creation
- Affordable housing quota: 25% requirement
- Infrastructure coordination: State funding for regional services
Available Government Land
The Department of Premier and Cabinet has identified:
- Greater Hobart: 200 hectares suitable for housing
- Launceston: 150 hectares available
- Regional areas: 300 hectares across multiple sites
- Infrastructure requirements: $400 million needed for full development
8. Foreign investment – Greens/JLN restrict; Labor/Liberal maintain status quo
Greens' Restriction Proposal
The Greens propose significant restrictions on foreign investment in residential property, arguing it drives up prices for local buyers.
Greens' Foreign Investment Policy
- New builds only: Foreign buyers restricted to new construction
- Additional tax: 8% foreign buyer tax on all purchases
- Vacancy tax: Annual tax on empty foreign-owned properties
- Residency requirement: Must live in property or face penalties
- Revenue use: Foreign buyer taxes fund social housing
JLN's Targeted Restrictions
- Price threshold: Foreign investment banned on properties under $800,000
- Regional protection: Complete ban on foreign investment outside Hobart
- Local preference: 90-day exclusive marketing to Australian residents
- Transparency: Public register of foreign-owned properties
Labor and Liberal Opposition
Both major parties oppose additional foreign investment restrictions:
- Labor position: Current federal rules adequate
- Liberal stance: Foreign investment supports construction industry
- Economic concerns: Restrictions could reduce development funding
- Federal jurisdiction: Foreign investment primarily regulated by FIRB
Current Foreign Investment Impact
Foreign Investment Review Board data shows:
- Tasmania purchases: 3-5% of residential sales to foreign buyers
- Price impact: Minimal effect on overall market prices
- New construction: Foreign investment supports apartment developments
- Regional variation: Higher in premium Hobart suburbs
9. Homelessness – Labor $50m; Greens housing-first; Liberal support services
Labor's Comprehensive Response
Labor proposes $50 million over four years to address homelessness through accommodation, support services, and prevention programs.
Labor's Homelessness Strategy
- Emergency accommodation: 200 additional crisis beds
- Transitional housing: 150 medium-term accommodation units
- Support services: Mental health, addiction, and employment programs
- Prevention programs: Early intervention for at-risk households
- Youth focus: Specialized services for homeless young people
- Rough sleeping: Outreach teams and safe spaces
Greens' Housing-First Approach
The Greens advocate for a housing-first model, providing permanent housing before addressing other issues:
- Housing-first principle: Immediate permanent housing without preconditions
- Wrap-around support: Services delivered in permanent housing
- Social housing priority: Fast-track access for homeless individuals
- Funding commitment: $75 million over four years
- Evidence-based: Proven successful in Finland and other countries
Liberal's Service-Focused Approach
- Support services: Enhanced mental health and addiction programs
- Emergency accommodation: Improved crisis response
- Employment programs: Job training and placement services
- Community partnerships: Work with charities and NGOs
- Funding commitment: $30 million over four years
JLN's Practical Solutions
- Tiny homes: Low-cost transitional accommodation
- Caravan parks: Regulated affordable accommodation options
- Rural focus: Address homelessness in regional areas
- Veterans support: Specialized programs for ex-service personnel
Current Homelessness Crisis
Shelter Tasmania data shows:
- Homeless population: 1,600 people experiencing homelessness
- Rough sleeping: 400 people sleeping rough
- Crisis accommodation: 85% occupancy rate (insufficient capacity)
- Youth homelessness: 350 young people aged 15-24
- Family homelessness: 200 families in temporary accommodation
10. Infrastructure – Labor $500m; Liberal $300m; coordination challenges
Labor's Infrastructure Investment
Labor proposes $500 million in housing-related infrastructure to unlock development sites and support population growth.
Labor's Infrastructure Plan
- Water and sewer: $200 million for network extensions
- Roads and transport: $150 million for access infrastructure
- Electricity networks: $100 million for grid upgrades
- Schools and health: $50 million for community facilities
- Coordination body: New agency to manage infrastructure delivery
- Federal partnerships: Leverage Commonwealth infrastructure funding
Liberal's Targeted Investment
- Total commitment: $300 million over four years
- Private partnerships: Developer contributions for infrastructure
- Priority projects: Focus on highest-impact developments
- Efficiency focus: Streamlined delivery processes
- Regional balance: 40% of funding for regional areas
Infrastructure Coordination Challenges
The Tasmanian Treasury identifies key coordination issues:
- Timing mismatches: Infrastructure delivery lags housing development
- Funding gaps: Local councils lack resources for upgrades
- Capacity constraints: Limited engineering and project management skills
- Planning integration: Poor coordination between agencies
- Cost escalation: Infrastructure costs rising faster than budgets
Critical Infrastructure Needs
- Water treatment: $150 million needed for capacity upgrades
- School capacity: 12 new schools required by 2030
- Health services: Additional GP clinics and specialist services
- Public transport: Bus network expansion for new suburbs
- Digital infrastructure: NBN and mobile coverage for growth areas
11. Construction industry – skills shortage threatens all targets
The Skills Crisis
Tasmania's construction industry faces severe skills shortages that threaten all parties' housing targets, with 2,000 additional workers needed to meet demand.
Current Skills Shortage
- Immediate need: 2,000 additional construction workers
- Critical trades: Electricians, plumbers, carpenters, bricklayers
- Aging workforce: 35% of tradespeople over 50 years old
- Apprentice numbers: Down 20% from pre-COVID levels
- Interstate competition: Higher wages in other states attracting workers
Party Responses to Skills Shortage
Labor's Workforce Strategy
- Training investment: $25 million for construction apprenticeships
- Migration program: Fast-track visas for skilled construction workers
- Wage support: Subsidies for apprentice wages
- Women in construction: Programs to increase female participation
Liberal's Market Approach
- Industry partnerships: Work with employers on training
- Regulatory reform: Reduce barriers to interstate worker mobility
- Technology adoption: Support for prefabrication and modular construction
- Productivity focus: Efficiency improvements to maximize existing workforce
Greens' Sustainable Construction
- Green skills training: Focus on sustainable construction techniques
- Local materials: Support for Tasmanian timber and stone industries
- Retrofit skills: Training for energy efficiency upgrades
Industry Capacity Analysis
The Master Builders Association Tasmania estimates:
- Current capacity: 4,000-5,000 homes annually
- Required capacity: 8,000 homes annually for Labor's target
- Workforce expansion: 60% increase needed
- Training timeline: 3-4 years to fully train new apprentices
- Cost impact: Skills shortage adding 10-15% to construction costs
The Housing Policy Reality Check
While all parties offer ambitious housing policies, the reality is constrained by construction industry capacity, infrastructure limitations, and funding challenges. Labor's 40,000 home target requires doubling current construction rates, while Liberal's market-led approach may struggle without significant government intervention. The Greens' rent caps offer immediate relief but risk reducing supply, while JLN's build-to-rent focus addresses a specific market gap. Success will depend on coordinated action across planning, infrastructure, skills training, and financing.
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Read more →Published 15 January 2025. Housing policy details from party platforms and government sources. Compare all party positions in our complete policy comparison.