Michael Ferguson,Minister for State Growth
The Tasmanian Government is taking action to ease cost of living pressures for Tasmanian families with a suite of measures to modernise land tax arrangements as part of our plan to secure Tasmania’s future.
Land tax thresholds will be increased to reflect today’s strong property market, with the land value at which land tax becomes payable to double from $25,000 to $50,000. The top threshold will also increase by $50,000, from $350,000 to $400,000.
The premium penalty rate of interest will be halved from 8 per cent to 4 per cent, and land tax bills over $500 will be able to be paid in three instalments over the year.
Premier Peter Gutwein said the new land tax arrangements would save Tasmanians hundreds of dollars each year.
“While there are already a number of mechanisms in place to help people with their land tax obligations, it is clear that more needs to be done to ease the financial burden on Tasmanian families, and importantly put downward pressure on rents” the Premier said.
“The new land tax thresholds will better reflect today’s strong property market, with around 70,000 landowners to benefit by up to $613 a year, and 4,100 additional landowners to pay no land tax at all in the year ahead.
“While land tax in Tasmania is the lowest, along with Western Australia, of all the states as a share of total state revenue, there remains a need to bring land tax thresholds into the era we live in today.
“This will modernise our arrangements while giving Tasmanians more money in their pockets.”
Minister for Finance Michael Ferguson said this would add to the measures already taken across the past year to help Tasmanians with their tax arrangements.
“These changes will mean more money in the pockets of many Tasmanian land owners, meaning more money to spend in local businesses.”
The Minister also said it complements the significant support to tenants and landlords as we have worked through the COVID-19 pandemic, including $2.3 million to support tenants and $1 million to support landlords.
“These new arrangements will also ease the need for increases in rental prices, with our strong expectation that landlords seek to pass on these savings to tenants next year.”