Tasmania State Budget 2019: Fast-track plan for affordable housing

UPDATED: Increased taxes on foreign investors and extended concessions for first home buyers are among a suite of measures to tackle Tasmania’s housing crisis

A total of $68 million has been budgeted to be spent on affordable housing in 2019-20.

INCREASED taxes on foreign investors, fast-tracked affordable housing funding and extended concessions for first home buyers are among a suite of measures to tackle Tasmania’s housing crisis.

In his budget speech, Treasurer Peter Gutwein said Tasmania led the nation in finance for the construction of new homes last year, with commencements up 14.4 per cent and completions up 28.3 per cent.

But in an effort to “keep the property market fair”, the State Government will more than double a foreign investor duty surcharge from 3 to 7 per cent, to bring Tasmania in line with other states.

“The Hodgman Liberal Government welcomes foreign investment in Tasmania but also believes it must be balanced with the best interests of Tasmanians,” Mr Gutwein said.

Duty concessions of up to $7000 for first home buyers, and pensioners downsizing, will be available until June 30 next year.

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Kingston couple Matt Bajak and Kristina Ulmanova said a first home builders grant of $20,000 allowed them to buy their first home earlier than anticipated.

“It was definitely a huge help,” Ms Ulmanova said.

Kingston residents Matt Bajak and Kristina Ulmanova said the first home builders grant allowed them to buy their home earlier than expected. Picture: LUKE BOWDEN

Land tax exemptions for both short-stay accommodation converted to long-term rentals and new homes put on the market as long-term rentals are also being extended to 2023.

As already announced on Tuesday, the State Government is bringing forward $10 million for affordable housing to 2019-20 in an effort to respond to the state’s acute housing shortage.

ousing Minister Roger Jaensch said a total of $68 million would be spent on affordable housing in 2019-20.

“To accelerate the building of more houses to address supply challenges, we have heavily front-ended our $125 million housing commitment in stage two of the Government’s affordable housing action plan,” Mr Jaensch said.

The Tasmanian Council of Social Service welcomed the fast-tracked funding, but called for the money to be quickly followed with detail on where, when and how the homes will be built.

ROG THE BUILDER’S NEW HOUSING PLAN

According to Government data, in December 2018 there were 3233 applicants on the public housing waiting list. The average time to house a priority applicant was 56 weeks.

Shelter Tasmania chair Andrea Witt said while the funding was welcome, the state’s historic public housing debt to the Commonwealth was stalling progress.

“Until we see action to address the current housing debt we really need a lot more for housing and homelessness services,” she said.

“We are sending back to the Commonwealth $15 million per year ... that really hamstrings the housing and homelessness system. There are no real measures [in the budget] to address the increased volume of people coming in to the homelessness services system.”