THE State Government will slide further into debt in a bid to create hundreds of jobs and leverage much needed new investment.
Premier Lara Giddings yesterday announced the Tasmanian Jobs Package she hopes will deliver 3300 jobs and create about $375 million in private investment.
The package will cost the State Government $24.5 million over the next four years and $11.7 million this year, as the state slides a further $44 million into deficit.
As revealed in the Mercury yesterday, Ms Giddings has more than doubled grants for Tasmanians building their first home topping up the existing $7000 first-home buyers' grant with a further $8000 for those who opt to build.
The money will be available for Tasmanians constructing new homes beginning on January 1 and continuing for 18 months.
Ms Giddings said the First Home Builders Boost will help to build 1100 first homes and create 1800 new jobs.
The move was supported by the building industry and the State Opposition yesterday.
Opposition Leader Will Hodgman said the grant, that his party has been calling for, was a step in the right direction. "We are quite happy from Opposition to lead the Government when they have run out of ideas," he said.
HIA executive director Stuart Clues said in the past year 3000 jobs and 1000 projects have been lost.
"The State Government's announcement today could be the adrenalin shot in the arm the industry needs to start rebuilding in 2013," he said.
A further 850 jobs are hoped to be created by offering payroll grants for businesses putting on new staff from today up until June 30, 2014 and maintained until June 30, 2015.
The payroll exemption for new jobs would give medium and large businesses the ability to save about $3000 a year on a new worker earning about $50,000 a year.
Acting CEO and the TCCI chief economist Phil Bayley commended the move that has been a proven winner in the past. "The TCCI has also been highlighting the impact of payroll taxes on employment for many years, so today's announcement of relief for new jobs is welcome," he said.
"This is a win for all employers, particularly those that are considering putting on new employees."
Ms Giddings said the relatively modest outlay will make a massive contribution to job creation and private investment. "The package is a key part of my agenda for 2013 which will focus on jobs, people and opportunities," Ms Giddings said yesterday.
"I look forward to seeing more Tasmanians find jobs as a result of the strong action we have taken today."
A further $2.5 million in additional funding for the Tasmanian Government Innovation and Investment Fund will be used to try to leverage $11 million in private investment and create 170 jobs.
The North will get a boost, with $2.8 million investment in projects, including the Seaport boardwalk expansion on the Tamar River in Launceston and the creation of the Hollybank Mountain Bike Park, for the combined creation of 80 new jobs.
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