In the lead-up to the state election, all political parties should commit to growth and development policies. Tasmania simply cannot afford anti-business initiatives.
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The Property Council of Australia is proud of the role that our members play in delivering prosperity and strong communities through private investment, which both creates jobs and builds the cities, suburbs and regions we call home.
Our industry has a significant role to play in the state’s continued economic growth, and that’s why we are dismayed the Labor Party and the Greens are supportive of a review of mainland-style property taxes including foreign investor and vacancy taxes.
Why spook the market at such a crucial time in Tasmania’s economic recovery?
These new property taxes were implemented upon a false assumption in large cities like Melbourne where the foreign investment, which helped bring new supply to market, would just keep coming.
It’s been shown not to be the case – and at a time when Tasmania is chasing population growth and investment, we should be giving ourselves a competitive advantage by not repeating interstate competitors’ mistakes.
How would a state-based vacancy tax interact with the federal government’s version? Will foreign owners purchasing student accommodation be taxed twice? This will have serious implications should we wish to leverage the Launceston and Hobart City Deals, and the West Park UTAS relocation, which are so importantly underpinned by education.
Tasmania competes in a global market where capital is shifted daily, yet the foreign investor rate remains extremely low. According to the Real Estate Institute of Tasmania, there were just 58 residential sales to foreign investors in 2017. We should be encouraging investment to create jobs, not turning them away.
The decision to review mainland property taxes will do absolutely nothing for housing affordability. To even contemplate a review, we would expect those advocating for these taxes to have a thorough understanding of the revenue that will be captured. We look forward to the release of this detail.
The Property Council welcomes community discussion and debate regarding housing affordability. We are extremely supportive of new houses being added to the Housing Tasmania stock, providing support for vulnerable people whilst also stimulating the building and construction industry.
Tasmanians require a variety of housing options at different points in their lives. Inner-city residential development should occur to offer diversity to the market. This will only eventuate if investment is made simple and cost effective with the finalisation of the Tasmanian Planning Scheme of paramount importance.
Increasing the First Home Builders Grant to the original rate of $30,000 would further stimulate the industry and provide young families an opportunity to enter the market.
The major parties should also be encouraging investment by offering a range of incentives to develop exciting new projects. That could be as simple as coordinating the raft of approvals required before even making a start.
Let’s make it easier for our local, interstate and international friends to invest in Tasmania, not harder.
A review of mainland property taxes is a political smokescreen that will not make it any easier for our children to purchase a home. And that is why it should be rejected.
- Brian Wightman is Property Council of Australia Tasmania executive director