The Qld Govt has sensibly responded to massive property industry pressure to abandon its idea of including interstate landholdings in calculating Qld Land Tax. Queensland had passed a new tax law on 24th June that would allow the government to calculate land tax based on property holdings across Australia, not just in Queensland, effective June 2023.
The decision comes after opposition from other state and territory governments and the Real Estate Institute of Queensland (REIQ), which labelled the plan “illogical”. The REIQ criticised the policy, claiming it would deliver a “king hit” to investor confidence in Queensland and would “send commercial rents through the roof”.
To effectively work, the tax, needed other states to share the personal data of their citizens with the Queensland government. Other state Premiers made it clear they were not happy about being asked to help lift taxes on their own constituents.
Property Investors Council of Australia chairman Ben Kingsley said the decision to scrap was a huge relief and should immediately restore investor confidence in the state. “We’re really thrilled that common sense has prevailed, and it’s going to be a massive relief for all Queensland renters” he said.
The Property Council’s Queensland executive director Jen Williams said it was the correct decision, given its expected impact on rental affordability and investor sentiment. “As details emerged of how the new tax would be implemented, it became clearer just how untenable it would be,” Ms Williams said. “The complexity of the tax and its reliance on the self-disclosure of individuals and data-sharing of other states reinforces this plan should be completely scrapped, and not just put on the shelf until a future day.
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