The Palaszczuk government is being urged to discard its planned property tax increases amid concerns it would hurt hardworking Queenslanders.
Last Wednesday, Property Council Queensland launched an appeal to the state government, asking it to abandon the hikes, which are due to come into effect on July 1, arguing it could “risk wiping the state off the global investment map.”
Christopher Mountford, executive director of the Property Council Queensland, said the tax would increase the cost of doing business, damage economic competitiveness, and impact all residents of the state.
“With Queensland preparing to leverage the Commonwealth Games to attract new investment opportunities, these tax increases couldn’t come at a worse time,” Mountford said.
Election campaign costings have revealed the Palaszczuk government’s intention to introduce new “Robin Hood” land tax thresholds for aggregated land holdings with an unimproved value exceeding $10m.
Individuals, companies, and trusts within the new threshold will be subjected to a 25% increase in the rate of land tax from July 1. The government has also committed to increasing the stamp duty surcharge on foreign buyers of residential property, from 3% to 7%.
“The end result of this decision will be higher business rents, higher costs for new homes, and damage to Queensland’s reputation as an investment destination,” Mountford said.
“New homebuyers can expect an additional $800-$1000 added to the cost of purchasing a new home.
“We once were able to lure investment from interstate and overseas with attractive tax rates, but we now find ourselves uncompetitive with our southern neighbours.”
Also read: Rising interstate migration good for QLD property market
Collections: Mortgage News
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