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MAY 2019 T A S M A N I A’ S L E A D I N G B U S I N E S S P U B L I C A T I O N . C I R C U L A T I O N 12,000 M O N T H LY Budget pledge While the Northern real estate market has improved, prices are lower than Hobart sales, generating less stamp duty. State spending to defy loss of GST, stamp duty S TAT E BUDGET BRIEFING By TOM O’MEARA SIGNIFICANT decreases in stamp duty and GST payments will challenge Tasmania’s Budget position but record spending will continue in health, education, housing and infrastructure. Treasurer Peter Gutwein is preparing to hand down his 2019 Budget on May 23 and is expected to remain in surplus, despite admitting there will be significant challenges over the coming four to five years. Infrastructure development, including the bold 30-year infrastructure plan essential for forward planning, will be a highlight of this year’s document. Last year the Treasurer announced a record $2.6 billion spend on community infrastructure over four years. Roads and bridges were to receive $1.1 billion, hospitals and health got $475 million, human services and housing was promised $205 million while schools and education spending was worth $192.2 million. The rollout of that significant infrastructure spending will continue in this Budget with the essential $650 million redevelopment of the Royal Hobart Hospital completed this year and work still under way at Launceston General Hospital. There is no expectation that the Government will budge on its current wage offer to the Public Sector. Mr Gutwein will be stymied by GST receipt reductions and a drop in stamp duty. In a nutshell, the pool of the national GST is decreasing by an anticipated $11 billion. Mr Gutwein said there would be a $280 million write down in Tasmania over the next four years from the decreasing GST pool. It’s important to note that this decrease is not in any way related to a new GST agreement which will come into play in 2021. It was agreed that Tasmania won’t lose a cent when the GST formula will be altered slowly across six years to target a standard that removes the peaks and troughs created by economic shocks, such as the mining boom. Mr Gutwein will also write down $280 million of stamp duty over the next four years. Continued page 2 FRIDAY 24 MAY ▼ HOBART ▼ LAUNCESTON ▼ DEVONPORT PRESENTED BY TREASURER PETER GUTWEIN MP BOOK NOW tcci.com.au 1300 559 122