Jeremy Rockliff

Premier of Tasmania



14 June 2018

Peter Gutwein, Treasurer

Reforming state taxes to drive growth

The Hodgman Liberal Government is committed to ensuring Tasmania’s state tax system is competitive with tax levels which are low, fair and as efficient as possible.

Our reforms are focused on creating more jobs, reducing the cost of living and improving Tasmania’s housing market.

Payroll tax will be reduced from 6.1 per cent to 4.0 per for payrolls up to $2 million, saving businesses up to $15,750. This will deliver the most competitive state payroll system for businesses with payrolls up to $4 million.

By lowering payroll tax, businesses can create new jobs and invest in plant and equipment so they can grow.

The Government is also extending the Payroll Tax Rebate scheme to support the training of 3,000 additional apprentices and trainees focussed in areas of high skills demand.

To attract business to Tasmania, we are also providing a payroll tax exemption, for up to 3 years, for any interstate business that relocates and employ in our regional areas.

To increase supply in the Tasmanian rental market, we will introduce land tax initiatives for new builds and existing short-stay accommodation properties that are offered for long term rentals.

The $20,000 First Home Owners Grant will be extended for 12 months and we are introducing a 50 per cent stamp duty concession for first home buyers of established homes and pensioners downsizing.

This comprehensive package of measures will make it easier for first home buyers to find their first home, and for pensioners to find a home that better suits their needs, whilst also freeing up family-sized homes for young families.

We laid the foundations in the last term of Government so Tasmanians could look forward to a brighter future – now we are getting on with the job of taking Tasmania to the next level.



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