Home Property Australia Tasmanian budget good for state growth

Tasmanian budget good for state growth

  • September 08, 2014

Tasmanian budget good for state growthThe Property Council has welcomed the recent budget handed down by Tasmania’s Liberal government, which it says lays the foundation for a strong property and construction industry.Property Council state president Tim Johnstone said the government has adopted a measured approach to savings and structural reform, but that there were good signs for the state’s $2.5 billion property and construction sector.”Progressing key initiatives such as the Planning Reform Taskforce, Coordinator General, and Infrastructure Tasmania promise to result in improved conditions for business in coming years,” he said. “We’re also pleased that essential needs like housing and infrastructure haven’t fallen victim to budget pressures, with an extra $17.2 million to deliver affordable housing as part of a $1.6 billion infrastructure spend.”However, Johnstone said the reduction in the First Home Builder Boost for first-home buyers to $10,000 (from July 2015) would make Tasmania less competitive with similar schemes interstate.He also called for a debate to be held regarding tax reform, stating that the property sector continued to be burdened by inefficient taxes such as conveyance duty. “We need to start a conversation about the role Tasmania plays in federal tax reform to make sure our revenue base is efficient and sustainable,” he said.The property and construction industry is the largest contributor to Tasmania’s gross state product and employs as many as 39,000 people.Find more on the Property Council’s reaction to the Tasmanian state budget here