Tasmanian Parliament approves land tax changes, but questions remain on how it will help renters – if at all

Parliament has approved land tax cuts for secondary property owners and landlords, promised by the Liberals in last year’s state election.

Now, a person with property or land other than their residential property will not have to pay land tax if it is valued under $100,000.

If the value is between $100,000 and $499,999, the property owner will pay $50 and 45 cents for each dollar of the assessed land value each year.

If the value exceeds $500,000, the property owner will pay $1850 and 1.5 cents for each dollar of the assessment land value each year.

The government has argued that the tax break for landlords primarily would result in lower rents for the state’s tenants.

It is estimated the cuts will cost $39 million each year in state revenue, but result in between $581 and $1625 in savings on an individual land tax bill.

Murchison independent MLC Ruth Forrest said she could not understand what made the government so confident that land tax reductions would be passed on to tenants in the form of lower rents when the market was so tight.

“Maybe a few might pass on the tax savings … but to imagine there’s a be a general tendency to do so is delusionary,” she said.

“In my view, it simply won’t happen for the vast majority.”

Nelson independent Meg Webb said 12 House of Assembly members and eight Legislative Council members detailed interests in more than one Tasmanian property in 2020-21.

She said this raised concerns over potential conflicts of interest in voting on the bill.

Ms Webb said she has a property that had been tenanted since the last declarations of interests were made.

She said 70,000 landowners were expected to benefit from the tax cuts. “This bill does nothing to provide any guarantee that financial benefits or relief from financial pressures that it provides will be targeted to those most in need,” Ms Webb said.

See more of Meg’s recent media.