The Property Council of Australia has welcomed the Tasmanian Government’s $3.6 billion infrastructure spend and commitment to housing supply.
The 2019-2020 State Budget’s significant investment in infrastructure is necessary to meet the challenges of our growing state and leverage the opportunity for a more prosperous and liveable Tasmania.
Tasmanian Executive Director, Brian Wightman, said, “This budget is easing congestion, and supporting the immediate supply and affordability of Tasmanian homes.
“The property industry creates more than 13,000 direct jobs for Tasmanians. The State Budget is an appropriate platform from which to grow this contribution, with a Net Operating Balance Surplus of $41 million, building on strategic funding delivered in the Launceston and Hobart City Deals,” said Mr Wightman.
“The Tasmanian Division has been proactive in advocating for investment and reform aimed at increasing housing supply and we are pleased the State Government has responded.
“The Hodgman Government’s decision to allocate $40.5 million from the existing four-year action plan is a timely response to housing stress,” he said.
Mr Wightman emphasised the need for Tasmania to retain its appeal as an attractive investment destination. Overseas capital is often essential to receive bank approval for office developments and inner-city housing supply.
“Ballooning the Foreign Investor Duty Surcharge from 3 per cent out to 7 per cent overnight sends the wrong message. We strongly encourage the Government to consider the economic ramifications of this policy.”
The Property Council’s Tasmanian Executive Director acknowledged targeted housing initiatives, adding: “The extension of the First Home Owner Grant of $20,000 through to 30 June 2020 and the finalisation of Tasmania’s one-stop Planning and Building Portal will bolster industry sentiment.”