23 May 2019
Peter Gutwein MP
2019-20 Budget: Keeping the property market fair
The Hodgman Liberal Government welcomes foreign investment in Tasmania but also believes it must be balanced with the best interests of Tasmanians.
Last year, to ensure foreign investors pay a fair share of State taxation and do not artificially drive up prices by reducing the supply of housing and primary production land, the Government introduced the Foreign Investor Duty Surcharge (FIDS) to level the property playing field.
The introduction of the FIDS ensures that foreign investors contribute their fair share to our State.
The 2019-20 State Budget will increase the rate of the FIDS on the purchase of residential property to from three to seven per cent, and will bring Tasmania into line with other states and territories.
The rate of the FIDS on the purchase of primary production land will also increase from 0.5 per cent to 1.5 per cent.
These increases will be implemented from 1 January 2020 and a review of the definition of ‘foreign persons’ will also be conducted to ensure it remains consistent with the Government’s original policy intent.
During 2019-20, the Government, in consultation with stakeholders, will develop a foreign investor land tax surcharge to ensure all market participants pay their fair share.
Ensuring all participants in the property market pay their fair share of tax will allow us to invest further in the essential services and infrastructure our growing state needs.