In this week's state budget, the Foreign Investor Duty Surcharge will more than double on the purchase of residential property from three to seven per cent.

The rate of the surcharge on the purchase of primary production land also will increase from 0.5 per cent to 1.5 per cent.

The Foreign Investor Duty Surcharge was first introduced in last year's state budget.

Treasurer Peter Gutwein said it was introduced to ensure foreign investors paid "a fair share of State taxation and do not artificially drive up prices by reducing the supply of housing and primary production land".

He said it leveled the property playing field.

The increases to be announced in this week's budget will bring Tasmania into line with other states and territories.

"The introduction of the FIDS ensures that foreign investors contribute their fair share to our State," Mr Gutwein said.

"These increases will be implemented from January 1, 2020 and a review of the definition of 'foreign persons' will also be conducted to ensure it remains consistent with the Government's original policy intent.

"During 2019-20, the Government, in consultation with stakeholders, will develop a foreign investor land tax surcharge to ensure all market participants pay their fair share.

"Ensuring all participants in the property market pay their fair share of tax will allow us to invest further in the essential services and infrastructure our growing state needs."

Mr Gutwein on Monday also announced that infrastructure spending across Tasmania would increase 45 per cent to $1.6 billion.

"It's infrastructure that creates jobs and helps us deliver better essential services," he said.