Liberals to slug foreign investors

FOREIGN buyers of homes and farming land would face a new tax under a Liberal Government, a move that has been slammed by the Property Council.

Treasurer Peter Gutwein has made the surprise announcement, the latest in a raft of policies designed to ease the state’s housing shortage.

Labor immediately accused the Government of hypocrisy after the Liberals had attacked its plan to review foreign in- vestment tax arrangements.

Under the Liberals’ proposed scheme, foreign buyers of residential properties would be hit with a 3 per cent surcharge. Overseas buyers of primary production land would face an additional 0.5 per cent property transfer duty.

“Generally, foreign investors do not pay other state taxes or the GST, so it is fair that they contribute to the state to support the provision of government services, like Tasmanians currently do,” Mr Gutwein said.

The scheme would raise $1.5 million and be implemented from July 1 if the Hodgman Government was re-elected.

The move comes after the Government had accused Labor of planning a “shack tax” after the party announced a review of vacancy taxes used interstate. Both major parties have ruled out taxing Tasmanians’ vacant properties.

Shadow treasurer Scott Bacon said the Government had copied Labor’s policy and broken their promise not to introduce any new taxes.

Property Council chief Brian Wightman said just 58 residential sales in 2017 had been to foreign investors.

“At a time when Tasmania is chasing population growth and investment we should be giving ourselves a competitive advantage by not repeating interstate competitors’ mistakes,” he said.

Greens leader Cassy O’Connor said a parliamentary inquiry was needed into the level of foreign ownership of property in the state.