State Budget 2018: Government proposes foreign investor duty surcharge for residential properties

THE State Government will introduce a foreign investor duty surcharge on the acquisition of residential property by foreign purchasers to “help level the playing field”.

THE State Budget delivers on the Government’s commitment to bring forward $25 million of its affordable housing strategy to start in the 2018-19 financial year.

However, stakeholders are likely to be disappointed that additional housing funding has not been announced.

The Budget includes $25 million each year over the forward estimates for the affordable housing strategy.

Housing Minister Roger Jaensch said the funding brought the Government’s total investment in affordable housing to nearly $200 million over eight years, “which is the largest ever Tasmanian government spend on affordable housing in the state’s history”.

GENERIC HOUSE PICS. Sandy Bay and West Hobart Generic house / suburb pics for Brad PetersenPicture: MATT THOMPSON.

The Government will introduce a foreign investor duty surcharge on the acquisition of residential property by foreign purchasers to “help level the playing field”.

There is also $500,000 in 2018-19 and 2019-20 for the Government’s housing and accommodation support initiative, a two-year trial to wraparound services for people living with mental health issues in supported accommodation.

Shelter Tasmania had called on the Government to invest the additional windfall it has received from increased conveyance duties – a product of the housing boom – back into affordable housing.

Conveyance duty revenue is expected to increase from $258.4 million this financial year to $297.7 million in 2018-19.