The market rate of interest for the 2016-17 financial year decreases to 2.01 per cent.
The rate is based on the 90-day Bank Accepted Bill Rate published by the Reserve Bank of Australia in the May preceding the new financial year.
Interest is imposed to:
compensate the Tasmanian Government for being denied the use of revenue; and
promote equity among taxpayers by ensuring that those who meet their obligations are not disadvantaged compared with those who do not.
Increase to the First Home Owner Grant - Tasmania
The Tasmanian Government has announced that, as part of the 2016-17 State Budget, the existing $10 000 First Home Owner Grant will be increased to $20 000.
The $20 000 payment is available for eligible transactions entered into on or after 1 January 2016 but before 1 July 2017. From 1 July 2017 onwards the grant amount will revert to $10 000.
Legislation will be introduced to underpin the new measure. Before that legislation comes into effect, the higher level of grant will be implemented by way of administrative arrangements (Grant Deed). The Grand Deed is available here.
The existing eligibility requirements for receiving the First Home Owner Grant will apply to applicants for the increased FHOG Grant.
Eligible transactions are as follows:
a comprehensive home building contract for a new home;
the building of a new home by an owner builder;
an off-the-plan purchase of a new home; or
the purchase of a new home (for example, a spec. home).
Building is required to be completed within 24 months of the commencement date of the eligible transaction. The existing requirement to commence building within 26 weeks of the commencement date of the eligible transaction will be removed.
For detailed information about the revised First Home Owner Grant and how it applies to eligible transactions, please read the Guideline - First Home Owner Grant.
EISPR4 – Employment Incentive Scheme (Payroll Tax Rebate)
The Tasmanian Government has introduced EISPR4 to provide up to two years’ payroll tax relief for employers who create additional, eligible position/s in Tasmania between or including 1 July 2014 and 30 June 2015. For more information, please read the EISPR4 fact sheet.