Tasmania Budget 2018–19 — What property investors need to know

First home owners’ grant

The First Home Owner Grant grants first home owners in Tasmania $20,000 for newly constructed homes. Those who have homes newly constructed and owner builders will see the grant eligibility being extended from 1 July 2018 to 30 June 2019 inclusive.

While this has no real use for existing investors in Tasmania, for those who want to start investing in the Tasmanian market, this could be an avenue to start rentvesting. However, first-time investors must consider that they have to live in the property themselves, which would be a period of time that no rent is collected.

Foreign investors

Foreign investors will be faced with a Foreign Investor Duty Surcharge, which sees an additional 3 per cent of the dutiable value for all purchases by foreign residents and an additional half per cent of the dutiable value for all purchases of primary production land by foreign investors.

The budget measures that could indirectly assist investors by boosting the economy, and therefore boosting the value of their portfolio are:

Infrastructure

In financial year 2018–19, the Tasmanian government plans to spend $888.2 million on infrastructure, which includes:

• $73.8 million to the Roads Program;
• $121 million to the Bridgewater Bridge
• $100 million to the Affordable Housing Strategy II;
• $96.1 million to new school construction
• $70.5 million to upgrading hospital infrastructure;
• $30.8 million to new ambulance service infrastructure;
• $51 million to the Cradle Mountain Experience; and
• $45 million to a new Northern Prison.

Economy and job growth

In financial year 2018–19, the Tasmanian government plans to spend $70.8 million on the economy and job growth, which includes:

• $16 million to upgrading visitor infrastructure across Tasmania;
• $15.5 million to develop TasTAFE infrastructure, which includes:
  
  • $4 million to an Agricultural Centre of Excellence;
  • $3.5 million to extend Drysdale in Claremont and Devonport; and
• $7 million to a Trades and Water Centre of Excellence.
• $12 million to upgrade tourism marketing
• $7.5 million to help small businesses employ more apprentices and trainees;
• $7 million to modernize agricultural research farms;
• $6.8 million to implement the government’s Taking Hospitality to the Next Level policy;
• $4 million to implement an Event Attraction fund;
• $2 million to implement the Screen Innovation fund; and
• Introduce multiple new tax reform initiatives, which include:
  
  • A regional business relocation payroll tax exemption;
  • A new lower payroll tax rate and threshold; and
  • The extension of the payroll tax rebate scheme for apprentices and trainees in skill shortage areas.

Health and education

In financial year 2018–19, the Tasmanian government plans to spend $438.8 million on the health and education, which includes:

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