Levelling the playing field - a fairer deal for Tasmanians
- 09 Feb, 2018
Peter Gutwein, Treasurer
A re-elected majority Hodgman Liberal Government will take action to level the housing affordability playing field by introducing a tax on foreign purchases of land and residential property.
In an increasingly competitive property market, we need to take action to ensure that prices are not driven up artificially by foreign buyers and that there are sufficient houses for people to live and work in Tasmania.
To manage this increasing demand from foreign investors and to ensure the Tasmanian property market remains affordable, a majority Hodgman Liberal Government will implement a Foreign Investor Surcharge of:
• An additional 3.0 per cent in property transfer duty on all purchases of residential property by foreign residents; and
• An additional 0.5 per cent property transfer duty on all purchases of primary production land by foreign residents.
This legislation will be introduced at the earliest opportunity with surcharges expected to take effect for property settlements from 1 July, 2018, subject to the Hodgman Liberal Government being re-elected.
We believe these surcharges will level the playing field for Tasmanians and ensure that foreign buyers contribute their fair share to our State through the $1.5 million this surcharge is expected to raise.
Generally, foreign investors do not pay other state taxes or the GST, so it is fair that they contribute to the State to support the provision of government services, like Tasmanians currently do.
To be clear, no Tasmanians will pay these surcharges and the experience of these types of surcharges in other jurisdictions is that they do not adversely impact on the property market.