The state's building industry and social housing sectors have welcomed Senator Jacqui Lambie's bargaining action with the federal government to ease the state's public housing debt to win her vote for its tax reform package.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Senator Lambie said she would vote in favour of the government's policy in the Senate if it was willing to waive the state's $157 million debt which would free up more funding for social housing.
Details of this handshake deal between the Tasmanian senator and the government have not been revealed.
Ms Lambie did not respond to calls for comment on Thursday to provide the detail.
Master Builders Tasmania executive director Matthew Pollock said should the deal lead to the construction of more public and affordable housing, the industry had the people power to deliver it.
He said this had been proven through the industry's ability to exceed the state government's housing target under its Affordable Housing Strategy.
"It's about the planning system and a long-term funding outlook to give businesses the confidence they need to expand and deliver increased targets," Mr Pollock said.
Transparent approach needed in negotiations: Shelter Tas
Shelter Tas executive officer Pattie Chugg said the organisation was heartened by Senator Lambie's actions as the agreement signaled the first time there was any real possibility for debt relief to occur.
"With such a chronic shortage of affordable rental homes and increasing homelessness across Tasmania, the $15 million per year freed up by this debt relief can make a real difference," she said.
"We need to see 100 per cent of (housing) funds dedicated to social housing and services.
"We need a clear and transparent approach as an outcome of any negotiations to ensure that the money goes to meet the needs of the many Tasmanians experiencing or at risk of homelessness."
TasCOSS chief executive Kym Goodes said she did not agree with how the government's tax package was bundled together but applauded Senator Lambie for bringing the state's housing crisis to national attention.
"While the Senate debates tax cuts for high-income earners, an increasing number of Tasmanians continue to sleep rough this winter," she said.
MORE ON TASMANIA'S HOMELESSNESS CRISIS:
"There are nearly as many Tasmanians on the state's public housing waiting list as there are Tasmanians earning $200,000 or more per year."
Ms Goodes said if stage three of the tax cuts proceeded, the budget bottom line would be hit by $12 billion a year.
"We don't know what the economy or the budget will look like in three or five years' time," she said.
"Low and middle-income earners would end up paying the price in the form of funding cuts to services, such as our hospitals, schools and community programs."
Tasmanian Housing Minister Roger Jaensch said the state and federal government were in discussions to retire the housing debt.
Tasmanian Greens senators Nick McKim and Peter Whish-Wilson said Senator Lambie had sold out the state to get the deal as the tax package would ultimately benefit the most wealthy.
"She's been conned," Senator Whish-Wilson tweeted.