- Land tax-free threshold will double to $50,000
- Tasmania and WA currently have the lowest land taxes in the nation
The Tasmanian Government has announced a suite of measures it says will modernise land tax arrangements.
In particular, land tax thresholds will double with the tax-free threshold increasing from $25,000 to $50,000.
The top threshold will also see an increase to $400,000 – up by $50,000.
In addition to this, the premium penalty rate of interest will be halved to 4% and owners will be able to pay land tax bills that total over $500 across three instalments throughout the year.
Along with Western Australia, Tasmania currently enjoys some of the lowest land taxes in the country when calculated as a share of total state revenue.
Tasmanian Premier, Peter Gutwein, said the changes will save hundreds of dollars for many Tasmanians.
“While there are already a number of mechanisms in place to help people with their land tax obligations, it is clear that more needs to be done to ease the financial burden on Tasmanian families, and importantly put downward pressure on rents.”
“There remains a need to bring land tax thresholds into the era we live in today.”
“This will modernise our arrangements while giving Tasmanians more money in their pockets.”
Peter Gutwein, Tasmanian Premier
Under the new thresholds, around 70,000 landowners will benefit by up to $613 per year with an additional 4,11 landowners not required to pay land tax at all this year.
Michael Ferguson, the Minister for Finance, said the new measures support tenants and landlords alike.
“These changes will mean more money in the pockets of many Tasmanian land owners, meaning more money to spend in local businesses.”
These new arrangements will also ease the need for increases in rental prices, with our strong expectation that landlords seek to pass on these savings to tenants next year.”
Michael Ferguson, Minister for Finance