Australia: Tax measures in 2022-2023 budget (Tasmania)

Proposed extensions of certain existing tax relief measures

Proposed extensions of certain existing tax relief measures

The Tasmania budget for 2022-2023 includes no new tax-related proposals, but does propose extensions of certain existing tax relief measures.  

Land tax

The budget proposes extending the following land tax relief measures included in the 2020-2021 budget (that were effective 1 July 2021), as of 1 July 2022:

  • Doubling of tax-free threshold for land tax to $100,000*
  • Increase in the upper land tax bracket threshold to $500,000
  • Reduction in the land tax rate applying to land valued between $100,000 and $499,999.99 from 0.55% to 0.45%.

Property transfer duty concessions

In relation to the 50% discount on property transfers for first home buyers of an established home and the 50% reduction of property transfer duty for eligible pensioners who sell their former home in Tasmania and downsize by buying another home in Tasmania:

  • The eligible period for the first home buyer and pensioner duty concessions is extended for a further 12 months to 30 June 2023.
  • The dutiable value of property eligible for the above concessions is increased from $500,000 to $600,000, with the new cap to apply retrospectively from 1 January 2022.

Foreign investor land tax surcharge

The 2% foreign investor land tax surcharge, introduced in the 2021-2022 budget, is proposed to apply to residential land that is not used as a principal place of residence and is acquired by a foreign person on or after 1 July 2022.

Other

Other tax-related measures include:

  • An extension of the first homeowner grant of $30 000 by one year to 30 June 2023
  • An extension of the payroll tax rebate scheme for apprentice and youth employees by two years to 30 June 2024
  • The state tax authority has discretion (limited to certain circumstances) from 5 April 2022 to extend the construction completion date for recipients of the Tasmanian HomeBuilder Grant

Read a May 2022 report [PDF 2.1 MB] prepared by the KPMG member firm in Australia

*$ = Australian dollar

 

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