9 May 2019
Since coming to office, the Hodgman Liberal Government has worked hard to fix the economic mess left by the previous Labor-Green Government which drove our state into recession and saw 10,000 Tasmanians lose their jobs.
Today, along with my fellow Treasurers from New South Wales and South Australia, I have written to Bill Shorten to seek an urgent, detailed explanation of the economic and fiscal impact his election policies to reduce access to negative gearing and reducing the capital gains tax discount will have.
Given Labor’s commitment to these policies, it is not surprising that I, and my fellow Treasurers, are concerned that this has the potential to slow Tasmania’s housing market including our nation-leading rate of housing construction.
A number of research houses have modelled a range of outcomes that would have significant negative consequences for the States and Territories, directly affecting home owners and those working in the construction industry, while also giving rise to broader negative economic consequences and reductions in State revenues.
The Reserve Bank has said the substantial softening of the housing market appears to have already had a negative economic effect on consumer spending, hampering economic growth and reducing revenue forecasts at the state and federal levels.
If Bill Shorten still remains committed to a fair distribution of GST revenues, he must today guarantee to compensate Tasmania for any loss of GST revenue as a result of his tax policies.
To date, Bill Shorten has refused to detail what the cost of his policies will be to Tasmanians and he needs to start by explaining the Bill they will face under Labor.
Link to letter: http://www.premier.tas.gov.au/documents/0540_001.pdf/