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{{propApi.successMessage}} {{region}} Change locationShort Stay Levy must not be used to undercut new housing supply
Short Stay Levy must not be used to undercut new housing supply
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Taxing one cohort of the market to fund another does not materially increase housing supply. It just adds another distortion in a market that is already highly taxed and regulated. Policies that genuinely help lower the cost of delivering new supply are what Tasmanians need.
HIA Executive Director Tasmania, Benjamin Price, said the levy must not be used to prop up a policy that limits new housing supply.
“HIA understands that the Short Stay Levy is to fund the Stamping Out Stamp Duty scheme - a policy that only supports buyers of established homes, not those wanting to build,” Mr Price said.
“That means the levy won’t increase housing supply. In fact, the existing policy is already doing the opposite.”
Mr Price said the impact is clear across the market. “New home building has declined while demand for existing homes keeps growing. The Stamping Out Stamp Duty incentive is pushing first home buyers away from building - and Tasmania is missing out on the new homes it urgently needs.”
“If the Government is committed to introducing this levy, then it must ensure the revenue is used to grow supply, not tighten it,” Mr Price said.
“HIA acknowledges and strongly supports the tripling of the First Home Owner Grant for Tasmanians who build - but that ends in June 2026. If the Government insists on a new levy, it must be used to both increase and extend First Home Builder incentives that drive new construction.”
“If we are to have a new charge or levy, it’s revenue should be used to increase much-needed housing supply.”
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