The Hodgman majority Liberal Government welcomes foreign investment in Tasmania, however we believe all participants in the property market must pay their fair share to allow us to invest further in the essential services and infrastructure our growing state needs.
In recent months, the Government has been consulting with stakeholders, including the TFGA, Tasmanian Law Society and Chartered Accountants Australia & New Zealand, on taxation arrangements for foreign investors, including proposed changes to the definition of ‘foreign person’ in the Duties Act 2001.
Legislation will be introduced in the current session of Parliament to ensure the definition of a ‘foreign person’ remains consistent with the Government’s original policy intent.
In addition, as a result of feedback from stakeholders, the rate of the Foreign Investor Duty Surcharge (FIDS) on the purchase of residential property will now be increased from the seven per cent announced in the budget to eight per cent, bringing Tasmania into line with Victoria and NSW.
The increase in the FIDS on the purchase of primary production land will remain at the same level (1.5 per cent) as announced in the 2019-20 State Budget.
Further, following feedback received through the consultation process from the TFGA and industry representatives, the Government has decided not to proceed with the introduction of a foreign investor land tax surcharge as was proposed.
As the 2019-20 Budget did not include an estimate of potential revenue from the introduction of a foreign investor land tax there will be no revenue shortfall in Budget estimates.
The Hodgman majority Liberal Government will continue to support policies which ensure all participants in the property market pay their fair share, while preserving the strong investment interest in our regions.