Michael Ferguson,Minister for Finance
The Tasmanian Liberal Government is already delivering significant land tax relief for property owners and shackies, and is committed to maintaining a competitive tax environment, with an objective for state taxes to be efficient, fair, simple, stable and sustainable.
Following on from the commitment we made during the State Election, we wasted no time passing legislation to deliver a substantial reduction in land tax of up to $613 per taxpayer from 1 July this year, with changes to appear in property owners' land tax bills later this year. These changes provide substantial relief to property owners of nearly $60 million over the next four years.
Our land tax reforms also mean that a further 4,100 Tasmanians will pay no land tax this year, allow land tax bills to be paid in three instalments, and reduce the premium rate of penalty interest for those unable to meet their land tax bill within the required timeframes.
Compared with other states, Tasmania's land tax revenue for 2020-21 is equal lowest as a proportion of total state revenue at 2.3 per cent. Claims that Tasmania's land tax is unfair compared to other states needs to be assessed against the facts. Land tax remains an important source of revenue to fund Tasmania's essential services.
The Government acknowledges that our strong economy has put upward pressure on property values, and has already committed to introduce a foreign investor land tax surcharge to level the playing field and to offset the cost of a potential capping regime on future increases for which options are currently being developed.
We will continue to deliver our plans to provide land tax relief for property owners and shackies as we work to secure our future.
