Member Brief: 2014 Tasmanian Budget
Today saw the release of the first budget for the Hodgman Government – the first Liberal budget Tasmania has seen in 16 years.
The Property Council has welcomed the budget which demonstrates the Government’s commitment to delivering on its election promises.
Key initiatives include funding for:
- Infrastructure Tasmania ($3.2 million over four years);
- the Office of the Coordinator-General ($8 million over four years); and
- the Tasmanian Planning Reform Taskforce (funded from existing resources);
The budget does not alter existing arrangements from property taxes (including conveyance duty, land tax and fire services levies).
A significant increase in affordable housing delivery will see $35.9 million injected into the building and construction industry via Housing Tasmania’s forward capital program.
This will be offset by a winding down of the First Home Buyers’ Boost.
This $30,000 grant was set to be scrapped at the end of 2014. However, the Government has decided to instead reduce the amount to $20,000 initially, then down to $10,000 from July 2015 onwards. While this is an improvement on the previous government’s announcements it still doesn’t compare as favourably to similar schemes interstate.
Through savings measures relating to the reform of the public service and a jump in revenues from property related taxes (linked to increased industry activity), the fiscal deficit will reduce to $366.8 million this financial year and is forecast to return to surplus in six years’ time.
F2015 (estimate) |
F2016 (estimate) |
F2017 (projection) |
|
| Economic growth (real GSP) | 1.5 | 2 | 2 |
| Inflation (headline CPI) | 2.25 | 2.5 | 2.5 |
| Unemployment | 7.25 | 7 | 7 |
| Surplus / deficit (fiscal balance) | ($366.8m) | ($214.3m) | ($246.4m) |
Commitment to Planning Reform |
|
|
The Tasmanian Planning Reform Taskforce is tasked with implementing a fairer, faster, cheaper and simpler planning system. This was a key election commitment sought be the Property Council as part of our red tape agenda. Funding for the taskforce will be allocated from existing departmental resources. |
|
Housing |
|
Affordable Housing StrategyIn line with the Liberals’ election commitment, $2,000 has been allocated for the coming year to develop an Affordable Housing Strategy. First Home Builder BoostThe $30,000 First Home Builder Boost was slated to finish on 31 December 2014. The Government has decided to extend this grant for 6 months to 30 June 2015 at a rate of $20,000; and then from 1 July 2015 at $10,000 on an ongoing basis. Housing Tasmania$17.2 million funding increase for Housing Tasmania’s Capital Program This will contribute $35.9 million directly to the building and construction industry over 2014-15
|
|
Freight and Transport Infrastructure |
|
Department of State GrowthThe Government has established a new Department of State Growth – which will be tasked with attracting investment to Tasmania and overseeing infrastructure spending. Overall infrastructure spending in the Budget will total $1.6 billion. Infrastructure Tasmania$3.2 million over four years (including $800,000 in F2015) to establish Infrastructure Tasmania. Infrastructure Tasmania will work closely with Infrastructure Australia to improve the coordination of major economic infrastructure including rail, major roads, energy and ports. Infrastructure Tasmania was a key election commitment supported by the Property Council. Recruitment for the position of CEO is currently underway. Road investmentRoads will receive total funding of $732.6 million over four years.
International Shipping Service$33 million will be spent over the next three years aimed at solving the lack of shipping capacity between Tasmania and Asian ports. The Government has announced that it is already in discussions with shipping companies to progress this issue. |
|
Taxation and public finance |
|
Property TaxesTax rates for property taxes will remain unchanged under the F2015 Budget. However, total collections are set to rise strongly on the back of increased property activity. In total, property taxes will contribute $324.2 million to the budget bottom line over the coming year.
New Payroll Tax RebateA payroll tax rebate for medium to large businesses will be available to employers who create eligible positions during F2015. Positions created must be retained until 30 June 2016. The rebate of up to two years will be offered to firms which meet the criteria above. The Government estimates this measure will cost $4 million over the next four years and create approximately 600 jobs. |
|
Governing smarter and efficient regulation |
|
Office of the Coordinator General$8 million has been allocated over the coming four years to establish the Office of the Coordinator General. The appointment of a Coordinator General was strongly supported by the Property Council. The role will act as a central point for seeking inbound investment and actively reduce red and green tape for business. Tasmanian Industry Participation PlansSuppliers of large government procurements will be required to submit industry participation plans as part of the Government’s “Buy Local” Policy. The plans will have to detail efforts to promote the use of local products and services. The same requirements will be extended to large private sector projects which receive government support. Centralised Property ManagementThe Government will proceed with plans to centralise government property services – creating a single point for oversight of leasing, property management |
|
Growing Tasmania |
|
Population Strategy$0,000 has been allocated over four years to boost skilled and business migration. This will be spent on a combination of targeted marketing activities, overseas trade missions, and encouraging international students to make Tasmania their long term home. This was a key ask in the Property Council’s election platform. Jobs Creation Package$28 million will be allocated to a Jobs Creation Package, aimed at creating 5,000 new jobs. Initiatives under this package include:
|
|