Media release – Tasmanian Liberals, 18 February 2024
Strong Plan To Stamp Out Stamp Duty For First Home Buyers
A re-elected Rockliff Liberal Government will abolish millions of dollars in stamp duty costs for young Tasmanians as part of our 2030 Strong Plan for Tasmania’s Future.
“Our Strong Plan for Tasmania’s Future will help more young Tasmanians buy their first home by scrapping stamp duty,” Premier Jeremy Rockliff said.
“Under our Strong Plan, eligible young Tasmanians won’t have to pay a cent of Stamp Duty for any home valued up to $750,000.
“This is a massive doubling of the existing stamp duty discount of 50 per cent, and also a significant increase in the current property value cap of $600,000 to $750,000.
“This will help around an extra 1,500 Tasmanian households into the housing market a year, with huge savings up to $28,935.
“That kind of money can literally make the difference between being able to buy a first home, or not – particularly given the need for a large upfront cash deposit when buying a house.
“Importantly, we will help pay for this with the new short stay levy, which will be paid overwhelmingly by interstate and overseas travellers. Every cent of that levy will go directly to Tasmanian first home buyers.”
Minster for Housing, Nic Street, said:
“Our Government is committed to helping every young Tasmanian to own a home.
“Already, our stamp duty discounts have helped 8,000 young Tasmanians into their first home in the past six years.
“But we know that it isn’t getting easier for young Tasmanians to achieve the Great Australian Dream of home ownership.
“The economic gains that our state has made under our majority Liberal Government has also brought growing pains, including housing supply and affordability challenges.
“That’s why helping singles, couples and families to buy their first home is a key priority of our 2030 Strong Plan for Tasmania.
“We want more young Tasmanians to buy a home here, to build a career here, and raise a family here.
“Only a re-elected majority Liberal Government and our 2030 Strong Plan for Tasmania’s Future will make it easier for Tasmanians to own their own home.”
The Stamping Out Stamp Duty policy is for existing houses, units, and apartments; it will begin immediately, will be open for two years until 30 June 2026 and will then be reviewed subject to prevailing market and economic conditions.
The Short Stay Levy will raise $11 million a year, raising around $44 million over four years. The Stamping out Stamp Duty will cost an estimated $64.3 million over two years, meaning an estimated net policy cost to the budget of $20.3 million.
Media release – Independent Member for Bass, Lara Alexander MP, 18 February 2024
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Bass Independent Lara Alexander has said that the Rockliff Government’s campaign promise of a 5% levy on Airbnb users, would not only do nothing to combat the existing crisis in the rental accommodation sector, but could have unintended consequences for the local housing market.
The Government announced on Saturday that it would impose a 5% levy on Airbnb users, with a promise that the estimated $11m raised would be used go towards helping first home buyers.
In a Sunday announcement, the Government then clarified that the revenue raised from the Airbnb tax would be used to partly offset the cost of abolishing stamp duty for first home buyers.
Mrs Alexander said that she supported the concept of a 5% levy on short-term accommodation, however she said that while on the face of it the policy seemed like a great win for first home buyers, increasing numbers of studies showed that the most common result of this type of Government intervention, was to simply increase home prices.
“Importantly, this not only does nothing to address the most pressing issue facing many communities today, which is a lack of affordable rental accommodation in our cities, it may actually make it worse,” she said.
“Higher house prices generally mean higher rents as owner/investors look to recoup their investment. It has also become increasingly obvious over the years that the policy of handing out cash to home buyers does nothing to solve the problems it is supposed to address.
“While I support helping young Tasmanians own their own homes, and I’m not convinced this is the best way to do it, at the same time I also support the growing cohort in society who are renters, are happy renting and are not interested in owning a property.
“Any Government worth its salt should be able to generate a flexible enough policy mix that helps everybody.”
Mrs Alexander said a better use of the money raised by a tax on the short-term accommodation space would have been to use it to provide grants for programs that addressed problems caused or exacerbated by the short-term accommodation market.
She said she had spoken to a number of Local Councils about the issue and overwhelmingly they wanted to address the issues of homelessness and at-risk-of homelessness.
However, she said that such programs needed significant funding to start up and maintain, which was where the State Government could step up.
“The Rockliff Government seems determined to exclude local councils from this space, but a number I have spoken to have told me they are very keen to devise and implement programs, but lack the funds to do so,” she said.
“In fact, in many places around the world, funds raised by levies on short-term accommodation are then passed on to local government areas or specifically quarantined to be used for programs devised at local level, so it can be used to address problems specific to each area.
“It is actually becoming a very standard practice and it is disappointing the Rockliff Government has not studied the experience of other jurisdictions more closely.”
Media release – Vica Bayley MP, Greens Housing spokesperson, 18 February 2024
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After years allowing thousands of homes to be ripped out of the rental market to be converted to short-stay rentals, the Liberals have finally acknowledged the status quo they’ve created is unacceptable.
But the response they’ve announced won’t do anything to deliver these much-needed homes back to those who are so desperately looking for an affordable and secure place to live.
Greens Member for Clark Vica Bayley will announce the party’s policy to not only stop the creation of whole-home short stay, but to bring homes back into the rental market.
Media release – TCCI, 18 February 2024
Short-stay discussion welcome, but more taxes not the solution
The TCCI is the voice of business in Tasmania and is calling for the Tasmanian election to be a contest of ideas.
TCCI CEO, Michael Bailey, welcomed the Liberals’ announcement that it was taking housing supply and affordability issues seriously.
“While we welcome a discussion about how to boost housing supply and home-ownership, we are concerned that the Liberals are effectively proposing a new tax,” Mr Bailey said.
“The TCCI is calling for all parties and candidates to commit to no new taxes and levies and no increases to existing taxes, levies and charges.
“Instead, we would encourage parties and candidates to try and find savings by ensuring the public sector is efficient and effective. We know that the size of the public sector has grown by nearly 30 per cent in recent years*.
“Public sector spending is out of control and needs to be reined in before new taxes are added.”
Media release – Dean Winter MP, Shadow Minister for Finance, 19 February 2024
Rockliff breaks no new taxes promise
It’s taken Jeremy Rockliff four days of an election campaign to break his promise of no new taxes.
The Premier should know that you can’t tax your way out of a cost-of-living crisis, but he’s trying to do it anyway.
The Liberals have now tried on a waste tax, a fire tax and now a shack tax, all while Tasmanians are struggling to pay the bills.
Regional accommodation operators have had a tough few years and with a cost of living crisis they need a government that supports them, not taxes them.
The state has a housing supply issue because of 10 years of Liberal government inaction and neglect. After 10 years the only solution Jeremy Rockliff has is more taxes.
This knee jerk response has been announced with no consultation and will increase cost-of-living pressures for tourism operators.
One thing is clear, after 10 years in government, the Liberals are completely out of ideas when it comes to helping Tasmanians.
Liberals split on Greens’ tourist tax
Jeremy Rockliff has adopted the Hobart City Council Greens’ proposed tourist tax after he opposed it in 2018.
When the matter was debated at City of Hobart Council in November 2018 then Hobart Alderman and now Liberal Member for Clark, Simon Behrakis, fiercely opposed the move, as did then Deputy Premier Jeremy Rockliff
Now this Tourist tax has become Liberal Party policy.
The proposal from Lord Mayor Anna Reynolds was denounced by, and voted against, by all the alderman except the Green members of council.
Aldermen Simon Behrakis, Tanya Denison, Jeff Briscoe, Marti Zucco, Damon Thomas and Peter Sexton all expressed “serious concerns” over the proposal.
Ald Behrakis said the council should focus on “reducing the burden of red tape on small business and cutting down on bureaucracy, not adding further hurdles” that would hurt one of the region’s core industries.
It makes one wonder what the Liberals actually stand for now they are implementing a Greens policy to tax visitors – especially one so strongly opposed by their local member and opposed by the current premier.
Does Mr Behrakis still hold those views or is he now on board with Jeremy Rockliff’s Greens’ tourist tax, a tax Jeremy Rockliff opposed back then?
The Liberals latest thought bubble has been criticised by the business sector and the Tourism industry.
If introducing a new tax that was proposed by the Greens and opposed by the current Premier and Liberal Member for Clark is the best the Liberals can come up with after being in government for ten years then they are in more trouble than we thought.
Jeremy Rockliff started of this election campaign saying that the Liberals would not introduce any new taxes. Four days into the election he’s broken that promise and no-one can believe anything he says.
Media release – Stayz, 19 February 2024
TASMANIAN LIBERALS PROPOSED LEVY FOR THE SHORT-TERM RENTAL ACCOMMODATION SECTOR A STEP IN THE RIGHT DIRECTION
The Tasmanian Liberals have announced it will introduce a 5% levy on all short stay accommodation in the state, to be paid by the visitor – not the owner. The levy will be used to partially fund a policy that removes stamp duty for 1,500 ‘eligible young Tasmanians’ who buy an existing house for up to $750,000, backdated to today.
Eacham Curry, Senior Director, Government & Corporate Affairs, Stayz commented on the announcement:
“Stayz welcomes the Tasmanian Government’s step in the right direction with the proposed levy on short-term letting. We have long advocated for sensible levies that are set at reasonable levels.
We also recognise the Government’s commitment not to impose arbitrary night caps on short-term letting in their acknowledgement that that it does not address the broader housing supply question.
Stayz supports fit-for-purpose regulation of the short-term rental sector. We have consistently advocated for a state-wide registration process, a mandatory code of conduct, and an industry-funded industry body to adjudicate community issues. Measures such as these can inform best-practice policy and avoid putting at risk the value that short-term rental accommodation brings to local communities.”
