Tasmanian election 2024: Liberals announce plan to scrap stamp duty for first home-buyers

The Tasmanian Liberals have unveiled a plan to save first home-buyers tens of thousands of dollars by introducing a polarising levy that would impact short-stay accommodation users.

Tasmanian Premier Jeremy Rockliff press conference at The Tasman Hobart after calling an election for March 23rd. Picture: Nikki Davis-Jones

The Tasmanian Liberals are seeking to court young voters with a $60m pledge to abolish stamp duty for eligible first home-buyers, intending to help fund the plan with a new 5 per cent short-stay accommodation levy.

Labor has accused Premier Jeremy Rockliff of breaking the Liberals’ promise not to introduce any new taxes, while the response to the policy from industry stakeholders and housing advocates has been mixed.

On day five of the state election campaign, Mr Rockliff and Housing Minister Nic Street announced the plan to scrap stamp duty for first home-buyers purchasing existing houses, units and apartments valued at up to $750,000.

Mr Rockliff said this would equate to a saving of up to $28,900 and would make it easier for roughly 1500 young Tasmanians to get into the property market.

Housing Minister Nic Street and Premier Jeremy Rockliff discuss the Liberals' new policy to abolish stamp duty for first home-buyers. Pictured with Blackmans Bay renter Alex Packer, who would benefit from the pledge. Picture: Rob Inglis

The $64.3m stamp duty policy would be backdated to new home purchases from February 18 if the Liberals retain government and would be reviewed after two years.

The short-stay levy is expected to raise about $44m over four years, with 100 per cent of the proceeds set to go towards abolishing stamp duty for first home-buyers, which would mean a net cost to the budget of $20.3m over the life of the policy.

The state government’s first home-owner grant scheme would still apply on top of stamp duty relief, with $30,000 grants available for people buying new homes not previously occupied or sold as a residence.

Blackmans Bay renter, Alex Packer, who works in hospitality, said he and his wife had wanted to buy their own home for about four years now but found it too difficult due to cost of living and soaring rents.

He said not having to pay stamp duty would allow him and his wife to buy a house within 2-3 years.

“We could [avoid] doing extra overtime, we could have the ability to take a family holiday or something else that we don’t have to sacrifice for,” he said.

Mr Rockliff said the “Airbnb tax” would be shouldered by short-stay accommodation users, 83 per cent of whom come from interstate or overseas.

“This is about ensuring that first home-buyers can actually live out the great Australian dream of having their own slice of Tasmania, in many respects,” Mr Rockliff said.

According to the Premier, introducing further concessions for first home-owners would not drive up house prices because the Liberals had a plan to increase supply by building 10,000 additional social and affordable homes by 2032.

Principal Solicitor Tenants Union Ben Bartl. Picture: Chris Kidd

Liberal-linked public relations firm, Font PR, is helping the party run its election campaign and also acts as a lobbyist for Airbnb, but Mr Rockliff said the short-stay levy policy was “absolutely” written by the Liberals.

Airbnb expressed its support for the levy on Sunday, saying that consumer levies of between 3-5 per cent were “fair and sustainable” and were preferable to “multiple regulations at a local council level around the state”.

Meanwhile, Tenants’ Union of Tasmania principal solicitor Ben Bartl said there were “quicker ways” of increasing housing supply in the long-term rental market than a short-stay levy, such as a moratorium on new short-stay permits.

The most recent short-stay data from Consumer Building and Occupational Services in the June quarter last year showed there were 425 entire home short-stay accommodation properties in the Hobart local government area and 330 in the Launceston municipality.

REACTIONS TO LIBERALS’ NEW SHORT-STAY AND STAMP DUTY POLICIES:

“The Tourism Industry Council Tasmania’s main concern is that this could be a slippery slope to a broader visitor tax, which would have a huge impact on our industry” – Amy Hills, Tourism Industry Council Tasmania CEO

“While we welcome a discussion about how to boost housing supply and homeownership, we are concerned that the Liberals are effectively proposing a new tax” – Michael Bailey, Tasmanian Chamber of Commerce and Industry CEO

“This is a good start, but much more needs to be done to improve housing supply and affordability” – Stuart Collins, Housing Industry Association executive director Tasmania

“You can’t tax your way out of a cost of living crisis … We think there’s a stronger role for councils when it comes to Airbnb. We want to make sure that locals aren’t priced out of markets but we also don’t want to see people taxed” – Dean Winter, Labor finance spokesman

REVEALED: Liberals want levy on short-stay accommodation

A 5 per cent levy on short-stay accommodation would be introduced if the Liberals are re-elected with the $11m it would raise all going to help first-home buyers.

The levy would be paid by people using short-stay rental properties such as Airbnb and Stayz – not the property owners.

It would not apply to traditional hotel accommodation.

Housing Minister Nic Street said housing affordability was “a complex issue” and in the past 10 years Tasmania’s population had increased from 513,000 to 573,000.

He said despite 3000 homes being built in the past four years, home ownership was beyond reach for many Tasmanians and rental prices were “still too high”.

“Our statewide short-stay regulatory policy has played an important role in enabling and supporting the growth of our visitor economy,” Mr Street said.

Nic Street MP and Premier Jeremy Rockliff and at Hadley's Orient Hotel, Hobart Picture: Chris Kidd

“However, on the other side of the coin, there is no doubt that the increasing number of houses on the short stay market has reduced the availability of long-stay rentals, and contributed to higher rents.

“The Liberal Party is a strong supporter of the rights of Tasmanians to use their homes to generate income through either short or long-stay rental, and we have no intention of curtailing that right with policies such as arbitrary and unfair caps.

“Importantly, 100 per cent of the around $11 million per annum that the levy will raise will go directly to assisting first home-buyers to buy their first home.”

The government says the levy would be paid largely by interstate and overseas travellers, with 83 per cent of short stay users in Tasmania used by non-locals.

It says short-stay levies had not impacted demand in Europe and Northern America.

A short-stay levy of 7.5 per cent has recently been announced in Victoria and is also being considered in New South Wales.

Premier Jeremy Rockliff at Hadley's Orient Hotel, Hobart Picture: Chris Kidd

Premier Jeremy Rockliff said in the past decade, the government had delivered “a strong economy and population growth, which have created both economic gains and opportunity for Tasmanians”.

“But with this growth has also come growing pains, and unprecedented pressure on our housing supply and infrastructure,” he said.

“This policy will help to ease the supply side pressures and to help more young Tasmanians to buy their first home.

“When Tasmanians have a key to their own home, they also unlock countless opportunities, and that’s what we will deliver.”

Mr Rockliff said the government would ensure continued statewide consistency of short stay regulation in Tasmania, “by prohibiting the imposition of arbitrary caps and further geographic distortions of the market”.

“This will ensure that we continue to strike the balance between supporting our visitor economy sector, private ownership rights, and housing affordability,” he said.

Originally published as Tasmanian election 2024: Liberals announce plan to scrap stamp duty for first home-buyers