Queensland government slugs interstate property investors with ‘new land tax’
For example, an interstate investor can enjoy the current tax-free threshold for land holdings worth up to $600,000.
The proposal outlined by Mr Dick would see a national land tax value calculated for real estate assets in every state and territory, to determine the land tax bill for the Queensland proportion of the portfolio.
So, an investor with property with a $600,000 land value in Queensland and $400,000 in New South Wales, for example, would be slugged $2700 per year.
Mr Dick defended the abrupt announcement, insisting the system “closes a loophole that was unfair”.
The announcement caught the property sector off guard and sparked swift anger.
“How can the government possibly justify slugging property investors with tax for land they own that isn’t even within our state borders?” Real Estate Institute of Queensland CEO Antonia Mercorella said.
“It’s utter nonsense that there’s a ‘loophole’ to close. From a practical standpoint, it’s also baffling to understand how on earth they intend to get this data to double-tax investors who are already paying this tax elsewhere.”
Mr Dick’s update also revealed that income from stamp duty is forecast to hit $5.38 billion this financial year, thanks to Queensland’s booming property market.
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That will soar to $19.9 billion over the forward estimates, some $3 billion more than expected.
“This treatment of property investors as an endless money pit is outrageous – the government is raking in a huge stamp duty windfall, then relying on private investors to provide the lion’s share of housing supply, and now they’re slapping investors yet again with new taxes,” Ms Mercorella said.
She said the property industry hadn’t been consulted about the new interstate investor land tax.
“There is no other state or territory that takes this approach and by treating property investors with contempt like this time and time again, investors may very well pull up stumps.”
Those property investors who remain will likely pass on the additional cost to tenants in the form of higher rents, she said.
The Liberal-National Party in Queensland attacked the proposal, dubbing it a “tax on investment” that will hurt renters.
“Make no mistake – this is a new tax and Queensland renters will bear the brunt of it,” Opposition treasury spokesman David Janetzki said.
“It’s the 10th tax on the property industry in the last five years. This decision says that Queensland is closed for business and will ultimately reduce housing supply.”