Tasmania’s 2019-20 State Budget was delivered on 23 May 2019. A formal Bill has not yet been introduced to implement the proposed changes.

Foreign Surcharges

• From 1 January 2020, the Foreign Investor Duty Surcharge (FIDS) rate will increase from 3% to 7% on the purchase of residential property, and from 0.5% to 1.5% on the purchase of primary production land. The increase to the surcharge on residential land will bring Tasmania in line with the other Australian jurisdictions (other than NSW, where the surcharge is 8%). The primary production land surcharge is unique to Tasmania.
• The definition of foreign person will be ‘reviewed’ and ‘enhanced’ to ensure it remains consistent with the Government’s original policy intent. It is presently unclear how this definition will be altered.

Housing Affordability Initiatives

• The $20,000 First Home Owner Grant will be extended for a further 12 months to 30 June 2020, and the duty concession for first home buyers of established homes and eligible pensioners downsizing their home will be extended to 30 June 2020.