Tasmanian State Election 2018: Liberals pledge land tax holiday to ease rental pain

THE community housing sector is cautiously welcoming the major parties’ announcements on the state’s rental crisis, but is warning the time frame is urgent.

Premier Will Hodgman says the land tax holiday would support the construction of up to 2000 properties to ease the rental crisis. Picture: SAM ROSEWARNE

THE community housing sector is cautiously welcoming the major parties’ announcements on the state’s rental crisis, but is warning the time frame is urgent.

Premier Will Hodgman made the latest announcement on housing policy on Thursday, promising to introduce a three-year land tax holiday for new properties made available as rentals.

The pledge follows the Liberals’ $125 million affordable housing policy announcement, and a $106 million housing package from Labor announced early in the campaign.

Rental availability and cost have emerged as major election issues with Hobart’s vacancy rate among the lowest on record for any Australian capital city.

Shelter Tasmania chair Andrea Witt said she welcomed both parties’ policy announcements but remained concerned about the time frames for their rollout.

The Liberals’ policy will roll out over five years and Labor’s over six.

MORE: RENTAL CRISIS HAS US WORRIED

MORE: LABOR PLEDGES $24M FOR NEW UNITS

MORE: $125 MILLION HOUSING LIFT

“This is something that needs to happen now,” Ms Witt said.

“We are at crisis point, it is critical, we do need more houses on the ground and we need those houses quickly.”

Ms Witt said services were dealing with double the number of homeless Tasmanians than a decade ago.

The community housing sector would need to be involved in policy implementation to ensure it was effective, she said.

Mr Hodgman and Building and Construction Minister Guy Barnett announced newly built properties rented out for at least 12 months would attract a land tax holiday.

Under the $2 million scheme, developers would be assessed annually over the three-year period to determine their eligibility. A parcel of land valued at $300,000 would attract tax of around $1500, the State Government’s online calculator indicates.

“The solution will be immediate if we are re-elected,” Mr Barnett said. “It will kick in immediately.”

The Housing Industry Association and Property Council both welcomed the move, which came on top of a 50 per cent stamp duty discount for new home buyers announced by the Liberals earlier this week.

Labor spokesman Josh Willie said the land tax policy would cost double, at $4 million, and work against Tasmanians looking for longer-term leases.

“Unlike the Liberals’ thought bubble, Labor’s approach to the affordable housing and rental crisis is targeted,” Mr Willie said.

“Our $106 million strategy will assist around 12,800 Tasmanians with improved housing and affordability.”