Tasmanian 2023-24 Budget Delivered

On 25 May 2023, Treasurer Michael Ferguson handed down the 2023-24 Tasmanian Budget, focussed on health, education and the alleviation of cost of living pressures. This Tax Insight focusses on four announced tax measures aimed at delivering on the focus of alleviating cost of living pressures. 

1.      Extension of eligibility period for certain duty concessions

The 50% discount on property transfer duty currently available to first home buyers and pensioners seeking to downsize has been extended by a further 12 months to 30 June 2024. Home buyers in these categories should be mindful of the stringent eligibility criteria that attach to both concessions. 

2.      Extending land tax exemptions for certain newly-constructed dwellings

The 50% discount on property transfer duty currently available to first home buyers and pensioners seeking to downsize has been extended by a further 12 months to 30 June 2024. Home buyers in these categories should be mindful of the stringent eligibility criteria that attach to both concessions. 

3.      Extension of the Payroll Tax Rebate Scheme

In welcome news for the employers of apprentices, trainees, and youth employees[1] in Tasmania, the Payroll Tax Rebate that affords payroll tax relief for such employers for a period of two years from new apprentices’ and trainees’ first date of employment, and one year from youth employees’ first date of employment, will be extended to 30 June 2024.

4.      Duty waiver on the purchase of certain electric vehicles extended

A development that may provide relief to Tasmanians who recently purchased but are waiting on the delivery of an electric vehicle, the duty waiver on the purchase of electric and hydrogen fuel-cell vehicles has also been extended to 31 December 2023, provided that the purchase is for a new vehicle and the contract to purchase was entered into prior to 25 May 2023.

In less positive news for current or prospective users of electric vehicles in Tasmania, the Tasmanian Government affirmed its commitment to introducing a road user charge for zero and low emissions vehicles from 1 July 2027, or when zero and low emissions vehicles make up 30% of new vehicles sales, subject to stakeholder consultation and the outcome of the High Court challenge to the similar move by Victoria. 

For more information

If you would like to discuss how the Tasmanian Budget could or will affect you or your business, please contact our specialists: Sam Mohammad or Mira Brewster.

[1] A person who has attained the age of 15 years, but has not attained the age of 25 years, who is employed or engaged other than as a trainee or apprentice.