The Premier and Treasurer, the Hon. Lara Giddings, presented the State Government’s budget today. The following provides a summary of the main elements for the property industry. Further analysis on the implications of this budget will be provided over the coming weeks.
For the Property Council Media Release, Tasmanian Budget - A missed opportunity to make Tasmania work, click here
Gross State Product (GSP) growth: 1.25 per cent (2012-13 forecast)
GST revenue: Down by $1.8 billion over forward estimates
Deficit: $283 million (2012-13)
Predicted return to surplus: 2014-15
Unemployment rate: 7.5 per cent (forecast 2012-13)
Infrastructure Spending: Forecast State Government spending 2012-13 $437.7 million; funding drops by $57.8 million in 2013-14 and by a further $52.7 million in 2014-15 to $326.3
The budget papers show that the property market is expected to remain soft for the next two years.
Total property tax revenue: $313.6 million or 33.3 per cent of total state taxation revenue
Top land tax rate: Remains at 1.5 per cent flat rate for land worth $350,000 and above
Land tax revenue expected to rise by $2 million or 2.3 per cent to $86.1 million (forecast 2012-13)
Stamp duty rate: Increased by up to 12.5 per cent with top marginal rate of 4.5 per cent for property worth $725,000 and above. Click here
for changes to property duty transfers
Stamp duty revenue to decrease by$23 million to $141 million (forecast 2012-13)
Fire Services Levy
Reducing Red Tape
Stamp duty increase by up to 12.5 per cent.
- $1.5 million for 35 units in Brisbane Street, Hobart;
- $1 million for land acquisition for affordable housing; and
- The renouncement of $7.8 million for the purchase and construction of public housing.
The Government appears to have walked away from its number one priority – planning reform. There is no new funding for the Tasmanian Planning Commission and no new planning reforms flagged beyond the current regional land use strategies and interim schemes.
State government funding for infrastructure in 2012-13 is forecast to be $437.7 million but the funding drops by $57.8 million in 2013-14 and by another $52.7 million in 2014-15 to be $326.3 million.
Despite Government claims that funding in this budget will be good for the construction sector it is cold comfort across the Forward Estimates for the industry sector already facing job cuts.
$1 million for the Passenger Transport Innovation Program, in addition to the pre-existing $2.1 million funding allocation provided in the previous Budget
$100,000 for the North West Cycle ways Feasibility Study
There is no funding for the position of the State Architect in the Forward Estimates, so effectively it has been abolished.
For the complete set of the Tasmanian State Budget 2012/13 papers click here