Treasury Miscellaneous (Affordable Housing and Youth Employment Support) Bill 2022

Ms WEBB (Nelson) – To follow up on some matters I raised in our earlier briefings on the bill, it would be good to get on the record here as we discuss it. Before doing that, I would reinforce what the member for Elwick said, that I do not see this so much as a housing policy, our comments are more geared towards stimulus, for sure.

As the member for Hobart mentioned, there are other measures underway from the Government which are useful and positive housing policy measures and I will speak about those in my State of the State reply when we finally get to them. There are many others that can be contemplated that would be effectively assisting people to be in, and stay in, houses.

However, following on from the member for Hobart seeking clarity on some of the matters to do with the duty concessions for downsizing and first home buyers, I am also interested in more detail about the expected impact of this. Not just the extension of time but that increase from $500 000 to $600 000 in the threshold. What are the expected numbers of who will benefit from that? Who will be caught in that and be able to get the benefit? Particularly around the increase from the $500 000 to $600 000, in the Government’s view, how many more people are likely to access this, or have this available to them and amplify its benefit? I would appreciate some discussion on this.

Similarly, to the other part of the bill in relation to the payroll tax rebate for apprenticeships, trainees and youth employees the figures on this to date, since it has been in, in terms of the benefit provided. How many employers or businesses have been supported under that scheme and what evidence do we have it has generated employment, above and beyond what may have been generated without it and then what we expect to see in terms of impact and outcomes from that, with this proposed extension in the bill? Just to try and quantify impacts and outcomes expected?

Mrs HISCUTT (Montgomery – Leader of the Government in the Legislative Council) – Mr President, I thank members for their contributions. I will seek some advice for the member for Nelson in a moment. In the meantime, the member for Hobart spoke about the increase to the threshold for duty concessions. Would buyers be able to access the concession for a house valued over the threshold? The duty concession has been capped to homes with dutiable values below $600 000, reflecting that purchasers of high-value properties have better capacity to pay the full duty liability. This measure is targeted to help those home buyers who need it the most.

The member for McIntyre talked about the First Home Owner Grant link to builders going into receivership. The Government is aware that some recipients of the Tasmanian HomeBuilder Grant will be impacted by builders no longer being able to operate. This bill
will provide the Commissioner of State Revenue with the discretion to extend the completion period in certain circumstances. This will provide grant recipients with an opportunity to engage a new builder to complete the build and agree on a new completion date.

Ms Rattray – That is very good information, particularly for people who are caught in that unfortunate circumstance.

Mrs HISCUTT – That is exactly right. Mr President, regarding the member for Nelson’s questions regarding the expected impact of the extension and increase to the threshold for duty concessions and how many extra people will benefit?

The duty concessions offered to first home buyers and pensioners downsizing are fiscally responsible measures targeted at those most in need. For the first home buyer duty concession, the estimated additional cost of increasing the dutiable value to $600 000 is approximately $6.8 million.

Ms Webb – I am looking for numbers of people.

Mrs HISCUTT – I am getting there. For the pensioner downsizing duty concession, the estimated additional costs of increasing the dutiable value to $600 000 is approximately $1 million. The following estimates are based on assumptions that are driven by historical
trends: in 2022-23 the estimated number of home buyer’s duty concessions is approximately 1200; in 2022-23 the estimated number of pensioner downsizing duty concessions is approximately 200.

I have some more information to seek for the honourable member for Nelson.

Ms Webb – Through you, Mr President, while the Leader is seeking that information, can I have those figures compared to what occurred in the year 2021, so we understand what the difference would be?

Mrs HISCUTT – Yes, we can get those figures for you. In the meantime, I will go onto the payroll tax rebate question that you asked about figures to date. How many businesses have been supported? Has it generated extra employment? What is the expected future
impact?

With respect to additional employment, we are unable to ascertain these figures.

Regarding future impact – we will start with historical numbers – in 2018-19, 193 employers claimed rebates totalling $6.7 million; in 2019-20, 209 employers claimed rebates totalling $6.2 million; in 2020-21, 294 employers claimed rebates totalling $4.8 million. The
reduction in 2019-20 and 2020-21 is due to the impact of COVID-19 and associated payroll tax waivers which resulted in fewer rebates claimed because some employers’ payroll tax liabilities were waived.

Ms Webb – In the first statement you made in relation to the payroll, in answer to my question, can I clarify whether you said were not able to determine what additional employment might have been delivered under this scheme compared to what normally would
have been occurring anyway? Have we not measured whether there was a successful policy outcome for providing this?

Mrs HISCUTT – Are you talking about if, with respect to additional employment, we are unable to ascertain these figures

Ms Webb – I am trying to understand if that statement means we do not determine whether this has been a successful policy. Because we do not know whether it has generated additional employment above what would have occurred. We have not assessed that.

Mrs HISCUTT – I shall seek some advice.

Recognition of Visitors

Mrs HISCUTT – Mr President, I will start with the duty concession numbers. For 2020-21 the first home buyers are 1457 and pensioners downsizing are 204. With regard to your question earlier, we do not hold those figures because it is measured in dollars saved, not dollars spent and rebates claimed as opposed to –

Ms Webb – Policy outcomes.

Mrs HISCUTT – Not policy outcomes. These are the policy outcomes.

Ms Webb – Policy outcomes would presumably mean additional employment?

Mr PRESIDENT – We should not carry on debate across the floor.

Ms Webb – One point of clarification on those first numbers if I might.

Mr PRESIDENT – Certainly. Point of clarification.

Ms Webb – The 2021 numbers were 1457 for the first home buyers and 204 for the…

Mrs HISCUTT – Pensioners downsizing.

Ms Webb – The expected numbers you gave me earlier for 2022-23 were 1200 for first home buyers and 200 for the pensioner concession. Both those numbers are lower. Are we expecting there will fewer people benefitted through that in the coming year than in the previous year, even with the extension up to $600 000? Just to clarify.

Mr PRESIDENT – This may be something the Leader wishes to pursue in the Committee stage.

Mrs HISCUTT – I will confer with my advisers.

Ms Webb – I am happy for it to be followed up in the Committee stage.

Mrs HISCUTT – Mr President, my advisers are busy here with calculations, but it is not something they can just pull together and they may need some time. It may be something that we can give you at a later date; perhaps tomorrow, when they have had time to study
further.