Opposition primary industries spokesperson Dr Shane Broad has roundly criticised Treasurer Peter Gutwein for launching a tax on foreign-owned farm land with no preparation.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
He called on Mr Gutwein to detail to primary producers the tax that he said could cost jobs and investment at a time when the unemployment rate was the worst in the country.
"The government is trying to ram through this big new tax with no consultation.
Read more
"It is concerning that key stakeholders, including the Tasmanian Famers and Graziers Association have not been consulted on the tax more than two months after it was announced."
He also hit out at Mr Gutwein over his failure to have the Treasury model the potential effect of the tax on farms, jobs and investors.
In response to an official request from Labor for records on the modelling of the effects of the tax, the Treasury said "it could not identify any documents relevant to the request".
"The Treasurer has no idea what impact this tax grab will have on jobs, because he has not done any modelling."
A government spokesperson said the Treasury had started work on the detail of the tax, and would start consulting stakeholders soon.
"The policy is not a tax on investment, but is aimed at ensuring all market participants pay their fair share," the spokesperson said.
"The Treasury is consulting with stakeholders on the definition of 'foreign persons' to ensure the original policy intent is maintained."
"We will make further announcements in due course."
Dr Broad said the tax could even apply to smaller family-owned farms, as it might be levied on businesses with just 20 per cent foreign equity.
Now farm jobs are under threat from the government's budget incompetence.
- Labor primary industries spokesperson Dr Shane Broad
"There could be an investment drought until business and investors have some certainty - that could cost jobs.
"Mr Gutwein has dreamed up this big new farm tax in a desperate attempt to plug his $1.1 billion budget black hole.
"Now farm jobs are under threat from the government's budget incompetence."
The levy was described in the 2019-20 Budget as a land tax surcharge on foreign ownership of residential and primary production land, to be levied from July 1, 2020.
While you're with us, did you know that you can now sign up to receive breaking news updates and daily headlines direct to your inbox? Sign up here.