Tasmania's inefficient, inequitable and excessive taxes inhibit property ownership, deter people from moving from properties that no longer suit their needs, drive rental prices higher, put shack ownership at risk and impact on insurance affordability. A comprehensive review of the property related state taxes is needed.
Housing is a major issue in Tasmania, with affordability continuing to worsen for owners and tenants. Tasmania's outdated property tax system is making this worse. We need an urgent and comprehensive review of Tasmania’s property related taxes, including conveyance duty, land tax and duty on property insurance.
Conveyance duty is a well-recognised barrier to home ownership and mobility. Tasmania’s land tax far exceeds what is typical in other jurisdictions, with the aggregation of values worsening the burden of this tax further. It is acknowledged that limited changes have been made or committed to recently, however these changes alone do not alleviate the need for strategic reform.
Each day, Tasmanians face the negative consequences of inefficient, inequitable and excessive taxes that inhibit property ownership, deter people from moving from properties that no longer suit their needs, drive rental prices higher, put shack ownership at risk and impact on insurance affordability.
Close examination of these tax and alternatives is needed given the potential to uncover significant benefits for all by boosting home ownership, improving housing affordability, enhancing housing mobility, supporting the economy and jobs, and by providing consistent revenue for government.
Reform of property taxes is underway in other jurisdictions, including New South Wales which has recognised that property tax reform has the potential to put downwards pressure on housing over longer term.