What does the State Budget mean for me?
Premier Peter Gutwein gave his budget speech yesterday. It’s a big spending budget, designed to provide some stability and security to the State economy. We bring you a brief summary, highlighting measures announced that may impact our clients.
- There’s a significant amount of money for health – a total of $900 million across a range of health infrastructure, home and community health initiatives and additional staffing in hospitals and the ambulance service.
- Education is also receiving a large chunk of funding, as the government pushes on with its commitment to extending high schools to years 11 and 12. Other initiatives in education include the transitioning of TasTAFE to a not-for-profit government business, more teachers in schools and TasTAFE, and additional staff in support services such as school nurses, and allied health professionals in Child and Family Learning Centres across the state.
- Housing continues to be a focus for the government, with more funding for affordable housing and a commitment to build a total of 3500 new social houses by 2027. There’s a $10,000 increase in the First Home-Owner Grant, incentives for making land available for new residential subdivisions and a further increase in the threshold for stamp duty concessions for both first home buyers and pensioners downsizing.
- Specific measures support both small and large business. There’s additional funding for vocational training and job readiness for young people, and funding to support and encourage employers who employ these people. A number of industry-based programs will also be funded to encourage job creation, including innovation and development grants for visitor attraction projects, grants for advanced manufacturing, specific funding for the construction, mining, agricultural and value-added forest products industries. The Premier also announced specific support for the events industry and travel agents.
- The community sector will receive a boost in funding in various areas, including family violence support, sporting facilities, legal assistance, after hours doctors and emergency food relief. The government is also providing funding for access to specialist financial counselling, specifically aimed at small business.
- There’s little to report on state tax reform. A foreign investor land tax will be introduced for foreign owners of residential properties. Land tax thresholds will be increased, such that some landowners should see a reduction in land tax bills. Electric and hydrogen fuel cell vehicles will be exempt from duty for 2 years in order to encourage purchase of these vehicles.
We would also like to remind you that the current round of business critical support grants is open until 16 September 2021.
As always, please contact your WLF Advisor if you would like to discuss the impact on your business or personal situation.
WLF Accounting & Advisory, supporting Tasmanians to move forward through challenging times.