Labor says it will deliver land tax cuts up to four times greater than those promised by the Liberals, in a bid to put downward pressure on rents.
On Thursday, Labor leader Rebecca White said the party's land tax policy would cut taxes for landowners with properties valued up to $3 million, and impose a surcharge on people who owned properties worth more than that.
"These cuts will have a focus on shack-owners, 'mum and dad' investors and landlords in the lower and middle tiers of the rental market," Ms White said.
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"The cuts will ease the cost of living pressures on small land-owners and provide incentives for medium-scale property investors to cap or reduce rental increases."
Like the Liberals, who also announced a land tax policy on Thursday, Labor would introduce a foreign ownership surcharge, which would see foreign landowners hit with heftier tax bills (excluding agricultural land).
Labor said its policy would result in 60,000 land tax accounts having their tax wiped completely and more than 150,000 accounts enjoying cuts between $450 and $2300 per year. The party's Treasury spokesman David O'Byrne said the policy would cost $7.5 million a year.
"The total cost of the land tax cuts will be $26.1 million but we've got some offsets and some surcharges which will bring $18.6 million back into the coffers," he said.
Meanwhile, the Liberal policy would result in more than 4000 Tasmanians not having to pay land tax, as well as a reduction for about 70,000 people, at a cost of $15 million a year (or $58 million over four years).
Liberal leader Peter Gutwein said Labor's plan was unrealistic, in contrast to his party's "sustainable" policy.
"Larger land-holders underpin our economy and employ thousands of Tasmanians - and it appears they will wear the cost [of Labor's policy]," he said.
"Labor's out of touch policy will grind development to a halt and put Tasmanian jobs at risk."
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