- Overall, the Property Council has welcomed the state government's commitment to infrastructure and housing investment
- Has warned to not over-rely on the sector
- Despite investments, there are concerns it won't meet the demand for public housing
Commitment to infrastructure investment and housing affordability by the Tasmanian government has been welcomed by the Property Council of Australia (PCA).
Rebecca Ellston, Tasmanian Executive Director, acknowledged that investment is necessary to expand the economy and transform growth to facilitate a more prosperous and liveable Tasmania.
“The government should be commended for its commitment to rebuilding the state in the aftermath of the pandemic and investing in critical industries that will create jobs throughout the state,” said Ms Ellston.
She added it was encouraging to see several Property Council policy initiatives being adopted by the state government, such as an additional $700,000 for Tasmania’s Planning Policy Unit and $3.45 million to support the implementation of the updated Regional Land Use Strategies.
Additionally, there is a $2 million investment in a long-term housing strategy, which takes into account various new initiatives including build to rent.
However, the Property Council noted that to fund the ambitious agenda, the Tasmanian government should not overly rely on the sector.
“The government is in a better economic position than expected, owing to strong GST receipts and significant increases in property tax revenue.”
Rebecca Ellston, Property Council
“The government will receive a $60 million stamp duty windfall in this year’s budget, with revenue from stamp duty alone expected to reach nearly half a billion dollars across the Forward Estimates.
“With property taxes accounting for 40% of state tax revenue, we welcome the government’s commitment to exploring the possibility of capping land tax increases. But urgent review of disproportionate property taxation is required,” Ms Ellston said.
Ms Ellston added she is looking forward to working with the state government on improving Tasmanians’ access to affordable housing.
Despite significant money set aside for social and affordable housing, it is expected the public housing waitlist will grow past 5,000.
According to publicly available data, at the end of the 2020-21 financial year, it was 4,144 on the register with 816 applicants housed. The average wait time is 68 weeks with the government aiming for 41.5 weeks.