Infrastructure spending an economic slam dunk
The Tasmanian Government's commitment to infrastructure investment and housing affordability has been welcomed.
Tasmanian Executive Director Rebecca Ellston acknowledged that investment is necessary to expand the economy and transform the challenge of growth into an opportunity for a more prosperous and liveable Tasmania.
“The Government should be commended for its commitment to rebuilding the state in the aftermath of the pandemic and investing in critical industries that will create jobs throughout the state.
“It was also encouraging to see the State Government adopt several key Property Council policy initiatives, including an additional $700,000 for Tasmania's Planning Policy Unit and $3.45 million to support the updated Regional Land Use Strategies' implementation.
“We also welcome the State's $2 million investment in its first comprehensive long-term housing strategy. Notably, the strategy will take into account a variety of new initiatives, including build to rent,” Ms Ellston explained.
However, to fund its ambitious infrastructure program, the Property Council warns against over-reliance on the sector.
“The Government is in a better economic position than expected, owing to strong GST receipts and significant increases in property tax revenue.
“The Government will receive a $60 million stamp duty windfall in this year's Budget, with revenue from stamp duty alone expected to reach nearly half a billion dollars across the Forward Estimates.
“With property taxes accounting for 40% of state tax revenue, we welcome the Government's commitment to exploring the possibility of capping land tax increases. But urgent review of disproportionate property taxation is required” Ms Ellston said.
In addition to increasing jobs, Ms Ellston looks forward to working with Government to improve Tasmanians' access to affordable housing.
Media contact: Rebecca Ellston | 0477 555 227 E | [email protected]