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Tasmania’s proposed Modular Housing Finance Guarantee has moved from announcement to legislation, with the government confirming eligibility requirements and a timetable for the scheme to be enacted.
The Tasmanian Government will release legislation this week for its Modular Housing Finance Guarantee Scheme, progressing an initiative first announced in June to address the financing gap that can arise while modular homes are being manufactured offsite. (main image: Tasmanian modular builder Valley Workshop installing hyper-insulated timber elements.)
Premier Jeremy Rockliff initially announced the proposed guarantee on 3 June, identifying construction finance as one of the major obstacles to greater adoption of modular housing.
The latest announcement provides further detail on how the scheme is expected to operate and confirms the government plans to have the legislation enacted in the final quarter of 2026.
Under the scheme, the Tasmanian Government will partner with lenders to guarantee a portion of construction finance while a modular home is being manufactured in a factory but before it is permanently installed on its site and can serve as conventional mortgage security.
“We will partner with lenders to guarantee a portion of construction finance during the early phase of modular builds – when homes are being built in the factory, but before they are installed on site and become standard mortgage security,” Rockliff said.
The government guarantee will reduce progressively as construction advances and cease after the dwelling has been installed and becomes standard mortgage security.
Eligibility requirements now confirmed
The government has also clarified which housing will qualify. A home must be manufactured offsite in a factory, transported to its destination and permanently affixed to land.
That definition effectively targets permanent modular housing rather than temporary or relocatable buildings.
Housing and Planning Minister Kerry Vincent said the government’s existing use of modular construction within social and affordable housing programs had demonstrated the potential of the approach.
“Our Government has strongly backed modular housing, including it as part of our social and affordable home investments,” Vincent said.
“We have seen first-hand how successful this type of construction is through our targeted programs and the finance guarantee is a fantastic next step.”
The legislation will now undergo a short consultation period.
While further details including guarantee limits and participating lenders have yet to be announced, Rockliff said discussions with the banking sector and industry were progressing.
“Industry is on board, we are working with the banks, and Tasmanians are keen to live in their very own modular home.”
