Following weeks of criticism from all sides of the property business, the Queensland Authorities has determined to scrap its proposed modifications to land tax.
Queensland Premier Annastacia Palaszczuk was compelled to again down on the controversial tax legislation that might have doubtlessly value interstate and expat traders tens of 1000’s of {dollars} per yr.
Beneath the proposed modifications, property homeowners that held actual property property in a number of states, together with Queensland, could be topic to property taxes on the whole worth of their nationwide property holdings.
A transfer that business our bodies labelled a, “tax seize,” which might discourage funding within the state resulting in additional shortages of rental properties.
The tax additionally confronted the issue of an absence of assist from different states. Notably, NSW Premier, Dominic Perrottet, refused to cooperate in handing over any knowledge regarding Queensland residents,’ property holdings in NSW.
Economists assessed it could have an effect on roughly 10,000 traders, and get better nearly $20 million a yr, from 2023–24, for the Queensland State Authorities.
A spokesperson for State Treasurer, Cameron Dick, confirmed the land tax modifications had been dumped.
“The Treasurer stands by the whole lot he’s mentioned about land tax, however after all he accepts the choice the Premier has made after speaking to different leaders,” the spokesperson mentioned.
Mr Perrottet backed Ms Palaszczuk’s choice to desert the tax.
“I applaud the choice, it was the appropriate one,” Mr Perrottet mentioned.
The transfer to desert the tax was additionally welcomed by renters throughout Queensland. The state is at present experiencing a extreme scarcity of rental inventory and a brand new tax that might doubtlessly see many traders compelled to promote their properties was trigger for alarm for a lot of business teams.
REIQ CEO, Antonia Mercorella, welcomed the information that might have broken property investor confidence at a time of the tightest emptiness charges in historical past.
“Abandoning the contentious land tax regime will carry confidence again to the property investor market in a time of nice uncertainty,” Ms Mercorella mentioned.
“The REIQ has led the cost in opposition to this land tax since December final yr and we labored with numerous stakeholders to battle the modifications.”
Ms Mercorella mentioned the transfer to scrap the tax was the appropriate one.
“To ship shockwaves by the personal housing funding market throughout a rental disaster was unprecedented and illogical,” she mentioned.
“The land tax modifications would have additionally doubtlessly impacted industrial property funding and nationwide employers with Queensland domiciled premises.”
“We respect the federal government’s transfer to shelve this retrograde tax reform and stay up for working with them on the Housing Summit in October to deal with the state’s housing provide points.”
