Peter Gutwein,Premier
The Tasmanian Liberal Government welcomes the important initiatives in the 2022 Federal Budget that will help ease cost of living pressures for Tasmanians and deliver investments in a number of key areas that will help create jobs, strengthen our economy, and deliver the essential services that Tasmanians need.
There is no doubt the situation around the globe has led to a significant increase in fuel prices, and the halving of the fuel excise fuel excise for six months will provide much-needed relief for Tasmanian motorists - saving around $30 a week for those filling up once a week, or around $700 over the six months.
I first raised this with the Federal Government a number of weeks ago, and I am very pleased they have listened and acted to ease the cost of fuel for Tasmanian households. I expect fuel retailers will pass on the reduction in full as soon as possible, and I encourage motorists to continue using the FuelCheck Tas app and website to find the cheapest fuel in their area.
Importantly, this will complement the initiatives we have already put in place to ease these pressures, including five weeks of free bus travel, and our $100,000 community services relief package.
Additionally, around 215,000 low and middle income earners in Tasmania will benefit from the boost to the existing low and middle tax offset from $1080 to a maximum of $1500, to be delivered as a tax refund.
Eligible pensioners, welfare recipients, veterans and concession card holders will also benefit from a one-off payment of $250, which will flow over the next four weeks.
More than 140,000 Tasmanians are expected to receive this cash bonus, including approximately:
- 72,000 age pensioners;
- 28,000 disability support pensioners;
- 24,000 welfare recipients; and
- 17,000 carers.
These initiatives will be very welcome for thousands of Tasmanians, further helping to ease cost of living pressure on Tasmanian households for those that need it most.
Tasmanian families will also have greater flexibility in how paid parental leave is accessed, with new mums and dads now able to choose which parent can take it, and when. Single parents will also receive an additional two weeks parental leave, giving them a total of 20 weeks, the same as couples.
The Budget also locks in important investments in infrastructure, with $639.9 million committed to new Tasmanian projects, including $100 million for the Great Eastern Drive and $96 million for the Tasmanian Freight Rail Revitalisation Program. These projects will create more local jobs and support our regional communities.
The Budget will also assist our ongoing efforts to help more Tasmanians get into their own home.
The new Regional Home Guarantee will assist aspiring homebuyers in regional areas, and the First Home Guarantee will be extended to include an additional 35,000 places nationally per year, which allows eligible first home buyers to put down a five per cent deposit without incurring lenders' mortgage insurance.
This will complement the measures I announced in the State of the State earlier this month, and will further ease pressures on social housing and help more Tasmanians into safe and secure housing.
Importantly, the Budget also includes additional funding for mental health treatment services and support for young people with severe and complex mental illnesses, which is especially important as we continue to manage the COVID-19 pandemic.
The Budget also includes the $800,000 over two years to provide mental health supports to the Devonport community in Tasmania following the tragedy at Hillcrest Primary School.
There is also additional funding for domestic violence to support the delivery of a new National Plan to support women and their children who are experiencing family, domestic and sexual violence, which will again complement the important work we are already doing to support our most vulnerable.
The Budget will also help build Tasmania's workforce of the future and help more young Tasmanians into work, with $5000 committed in support payments for trainees, and up to $15,000 in wage subsidies for employer who take them on.
There will also be additional training places under a new National Skills Agreement, with small businesses to be rewarded for upskilling staff, with a $120 tax deduction for every $100 spent on training.
Tasmania's GST relativity has reduced given our strong economy and property market but with a significantly increased national GST pool, Tasmania's GST revenue is forecast to increase marginally compared to the 2021-22 State Budget. However, compared to the increased estimates outlined in February's RER, it is estimated that there will be a $44 million reduction in GST receipts for 2022-23.
Treasury will do further work on GST estimates in the development of the 2022-23 State Budget.
This Budget delivers for Tasmania and is another demonstration of our joint commitment to secure Tasmania's future.
