On 14 June 2018, the Tasmanian Treasurer, Peter Gutwein, delivered the 2018-19 Tasmanian State Budget. Focused on “building for the future and taking Tasmania to the next level”, the Tasmanian Government has allocated a record $2.6 billion in funding for new job creating infrastructure initiatives over a four year period.
Notable projects include:
- $1.1 billion investment in roads and bridges infrastructure
- $475.6 million investment in health spending
- $192.2 million investment in schools and education
- $142.2 million investment in tourism, recreation and culture.
To support the creation of 9,300 jobs over the next four years, the Tasmanian Government has committed to:
- extending the Payroll Tax Rebate Scheme for apprentices and trainees in areas of skills shortages to 30 June 2021
- providing a regional business relocation payroll tax holiday to support interstate businesses relocating to Tasmania and establishing operations in a regional area
- following the mainland states by implementing a Foreign Investor Duty Surcharge. A 3 percent surcharge will apply to purchases of residential property by foreign residents, while a 0.5 percent surcharge will apply to purchases of primary production land.
Other tax reform measures include:
- providing a 3 year land tax exemption for all newly built housing that is made available for long-term rental
- providing a 50 percent duty discount to first home buyers of established homes valued at up to $400 000 for an initial 12 month period.