28 February 2022
Peter Gutwein, Premier
The Tasmanian Liberal Government is taking further action to ease the cost of living for Tasmanian families and put downward pressure on rents, with the tax-free threshold for land tax to double to $100,000.
This means land tax will not be paid on land valued under $100,000, and we will also lift the upper tax threshold to $500,000 and lower the tax rate for land valued between $100,000 and $500,000 from 0.55 per cent to 0.45 per cent to reduce tax payable.
We took action last year to relieve some of the costs of rental properties and put downward pressure on rents by resetting the land tax thresholds, which provided more than $56 million in land tax relief for landlords and property owners over four years.
There is no doubt our strong economy and desirable lifestyle has meant more and more people want to live, work and raise a family in Tasmania.
With house prices and rents continuing to rise, we know more needs to be done, and the new arrangements will save Tasmanians hundreds more each year, providing more money to spend in local businesses.
The changes mean around 70,000 Tasmanians will save on average approximately $800 every year, up to a maximum saving of $1625 – with close to 12,000 taxpayers no longer needing to pay any land tax at all.
When combined with the changes we made last year, it will provide about $220 million of tax relief for property owners over the next four years – to enable further reductions in the costs for rental properties and helping to put downward pressure on rent prices.
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