Hobart City Council is considering a Housing Supply Incentive Policy aimed at getting already approved projects off the ground. With over 900 dwellings approved but not started, the issue isn’t planning, it’s the cost and feasibility of construction. The proposal targets medium-density projects in Central Hobart, North Hobart and the waterfront, locations best suited to higher-density living.
What’s proposed
- Five-year rates holiday: 100% remission during construction and early operations.
- Fee relief: potential waivers/remissions on stormwater service rates, planning, building and plumbing fees, strata titling and appropriate waste disposal fees.
- Indicative value: $10,000–$12,000 per dwelling.
- Eligibility: projects of 5+ dwellings with planning approval and urban design review; community housing providers where an affordable component is included.
- Exclusions: short-stay, student accommodation, some building classes, and projects already fully funded by other tiers of government.
- Readiness: incentives apply only when a project is genuinely ready to start.
- Partnerships: Council is seeking State Government and TasWater support to strengthen the package.
Why it matters
Targets the right places: Focus on serviced, inner-urban locations aligns with demand, amenities and transport.
Closes the feasibility gap: Soft-cost relief and rates remissions improve cash flow, reduce holding costs and support finance conversations.
Accelerates delivery: Helps unlock approved townhouses and mid-rise apartments stalled by construction and funding pressure.
If adopted, the policy addresses the core barrier, construction cost and feasibility, enabling approved medium-density projects to commence.
