Confusion continues in the primary production sector over the government's proposed new tax on foreign owned farms and residential land.
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The government unveiled the tax in the 2019-20 Budget, describing it as a land tax surcharge on foreign ownership of residential and primary production land, to be levied from July 1, 2020.
Tasmanian Farmers and Graziers Association CEO Peter Skillern said his members were in the dark over what it meant.
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"Our view is if we're talking about a new land tax, it's not what we're specifically aware of and we would like discussions about that.
"In the budget papers, it's confusing.
A document came out for comment and submission, but it doesn't provide any clarity
- TFGA CEO Peter Skillern
"We're trying to get clarity. It's very unclear as to whether it's an increase in the conveyancing rate, which is consistent with government policy, or a completely separate tax.
"A document came out for comment and submission, but it doesn't provide any clarity."
VDL Farms CFO Tim Zhou said it was the first time he'd heard of it and if it went ahead, it would have some impact.
"It will have negative impact and we're disappointed, particularly because we have had no consultation.
"The government should encourage foreign investment to increase employment locally, and because we export overseas."
Mr Zhou said the company would get in touch with the government to find out more.
Dutch Mill's Peter Arnold said he had seen no details and had no comment.
Treasurer Peter Gutwein said the government would consult the sector over the tax.
"We welcome foreign investment in Tasmania, however it must be balanced with the best interests of Tasmanians, and foreign investors must contribute their fair share to our state," he said.
Treasurer promises consultation
"Treasury is currently considering rates and thresholds, as well as reviewing the definition of 'foreign persons' so it is consistent with the government's original policy intent, and all applicable obligations.
"This work will be done in consultation with stakeholders, including the TFGA, Law Society and relevant professional bodies."
Opposition agriculture spokesperson Dr Shane Broad, who has written to 44 potentially affected landowners, said he believed it could affect investment, jobs and land values.
Could cause investment drought
"There are no details on how it will apply and who will be caught in the net, so there is potential for an investment drought until businesses and investors have some certainty."
He said it could apply to farmers who were residents but not citizens and to businesses with as little as 20 per cent foreign equity.
If levied at 1.5 per cent, it would cost $146,587.50 a year on $10 million land value, according to the government calculator.