QUICK FACTS
- Tax-free threshold raised from $25,000 to $100,000 in past three years
- Delivered tax relief for nearly 70,000 landholders of up to $800 per year due to our strong action in response to the growth in land values since 2021
- Up to $113 in additional tax relief per year to be provided by increasing the tax-free threshold to $125,000
- Through the Liberals’ changes more than 16,000 landholders will no longer pay land tax
- Provide land tax exemption for up to three years, where a newly built home is made available for long-term rental, to incentivise property owners
- Provide one-year land tax exemptions for property owners that switch their property from the short to long-term rental market
Under our 2030 Strong Plan for Tasmania’s Future, a re-elected majority Liberal Government will:
- Raise the minimum threshold for land tax by $25,000 to $125,000.
- This will abolish land tax entirely for 4,400 landowners, including “shackies”.
- Average saving of $113 for remaining property owners still subject to land tax.
- Provide support to mum and dad investors with new properties on the long-term rental market.
- Provide land tax exemptions for homes converted from short-stay to long term rentals.
An important part of our 2030 Strong Plan for Tasmania's future is to deliver immediate cost of living relief to Tasmanians and to put downward pressure on Tasmanian rental costs.
Reducing the burden of land tax
The Liberals are the party of lower taxes.
We have a strong track record of providing land tax relief. In 2019-20, we waived nearly 3,000 small-value land tax accounts as part of our initial response to the pandemic, and in 2020-21, we provided waivers on commercial land where owners were experiencing hardship due to the economic impact of COVID-19.
In recognition of the strong growth in the Tasmanian property market, we increased the land tax thresholds twice in the last three years. In 2021, the tax-free threshold was doubled from $25,000 to $50,000, and the top tax threshold was raised from $350,000 to $400,000.
In 2022, we made further changes to land tax – the tax-free threshold was doubled again to $100,000, the top tax threshold was raised to $500 000 and the rate of tax that applies between $100,000 and $500,000 was reduced to 0.45 per cent.
All land tax payers have benefited from these changes, with the most recent reforms delivering up to $600 in tax relief. Taxpayers with taxable holdings of $500,000 or more have saved up to $1,625 compared to that which they would have paid had these changes not been made.
These changes have provided Tasmanians with a total of $227.5 million in land tax relief, and this now means that Tasmania’s land tax revenue as a share of total state revenue and on a per capita basis is estimated to be one of the lowest in Australia.
Providing more relief for Tasmanian taxpayers
A re-elected majority Liberal Government will provide further land tax relief. We will increase the tax-free threshold by $25,000, reducing the burden on mum and dad investors, and the family shack.
Increasing the tax-free threshold to $125,000 means that more than 4,400 landowners will no longer get a tax bill, and save remaining property owners up to $113.
This change will provide tax relief to potentially thousands of Tasmanian “shackies”, and will provide support to mum and dad investors who have their homes on the long-term rental market.
Incentivising investment in rental accommodation
The Tasmanian Liberal Government has a strong track record of providing incentives to make properties available on the long-term rental market.
In 2018, we introduced a land tax exemption for up to 3 years, where a newly built home was made available on the long-term rental market, encouraging both new housing supply and availability in Tasmania’s rental market.
In addition, in 2018, we incentivised property owners renting their property as short-term accommodation to instead make their property available on the long-term market by providing a one-year land tax exemption.
Under current legislation, these exemptions are due to expire on 30 June 2024.
A re-elected majority Liberal Government will extend these land tax exemptions for a further two years to 30 June 2026.
These are sensible policies that promote making properties available for long-term rental.
Net Cost: $29.2 million over four years