An important part of our 2030 Strong Plan for Tasmania’s Future is to make it easier for Tasmanians to own their own home.

“Housing affordability is a complex issue, involving factors including supply, interest rates, population growth as well as factors such as short stay accommodation,” Minister Nic Street said.

“Over the past decade Tasmania has gone through an unprecedented period of population growth, increasing from 513,000 when we came to office in 2014 to 573,000 today.

“In response, in the last four years alone we’ve delivered 3,000 more homes for Tasmanians.

“Despite this, we know that for many Tasmanians owning their first home lies beyond reach, and rental prices are still too high.

“Our state-wide short-stay regulatory policy has played an important role in enabling and supporting the growth of our visitor economy.

“However, on the other side of the coin, there is no doubt that the increasing number of houses on the short stay market has reduced the availability of long-stay rentals, and contributed to higher rents.

“The Liberal Party is a strong supporter of the rights of Tasmanians to use their homes to generate income through either short or long-stay rental, and we have no intention of curtailing that right with policies such as arbitrary and unfair caps.

“Rather, a re-elected majority Liberal Government will introduce a 5 per cent fee on short-stay rental accommodation.

“Importantly, 100 per cent of the around $11 million per annum that the levy will raise will go directly to assisting first home-buyers to buy their first home.”

How it will work:

• The levy will be introduced on short-stay rental properties such as those advertised on AirBnb and Stayz.
• It will not apply to traditional accommodation operators such as hotels and pubs.
• The short-stay levy will be paid by those using short-stay accommodation, not the property owners.
• The levy will be paid overwhelmingly by interstate and overseas travellers, with 83 per cent of short stay users in Tasmania used by non locals.
• A short-stay levy will not impact demand, as demonstrated across Europe and Northern America where similar levies exist.
• A short-stay levy of 7.5 per cent has recently been announced in Victoria and is also being considered in New South Wales.

Premier Jeremy Rockliff said the policy was part of the majority Liberal Government’s 2030 Strong Plan for Tasmania’s Future.

“Over the past decade, our majority Liberal Government has delivered a strong economy and population growth, which have created both economic gains and opportunity for Tasmanians.

"But with this growth has also come growing pains, and unprecedented pressure on our housing supply and infrastructure.

“This policy will help to ease the supply side pressures and to help more young Tasmanians to buy their first home.

“This will deliver around $11 million a year that will 100 per cent go directly to helping Tasmanians to buy their first home. When Tasmanians have a key to their own home, they also unlock countless opportunities, and that’s what we will deliver.

“We will also ensure continued state-wide consistency of short stay regulation in Tasmania, by prohibiting the imposition of arbitrary caps and further geographic distortions of the market.

“This will ensure that we continue to strike the balance between supporting our visitor economy sector, private ownership rights, and housing affordability.

“Only a re-elected majority Liberal Government and our 2030 Strong Plan for Tasmania’s Future will make it easier for Tasmanians to own their own home and put downward pressure on rental costs.”