- The proposed tax would involve calculating value of all Australian property
- There was uncertainty about how the tax would operate
- Comes as more property investors intend to sell their stock
The Queensland state government has confirmed it will shelve its new land tax.
The land tax, which would take into account some interstate property owned by Queenslanders, had been highly criticised, especially at a time with property investors increasingly leaving the scene.
This has caused lower rental properties on the market, leading to increased rent prices, as the cost of living rises further. A PIPA survey revealed that even more investors are planning to sell their stock. Perhaps good for those who are in a position to purchase a home, but devastating for the millions of Australians who are renters.
Given the states have little constitutional power over each other in terms of taxation and information sharing, many questioned how the interstate component of the land tax would be operated in particular.
Jen Williams, Queensland Executive Director of the Property Council (PCA), said it was the right decision.
“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.
Jen Williams, Property Council QLD
“Over the past few weeks, we have seen the Queensland Government take swift and decisive action to address the state’s housing crisis, with the shelving of this tax now added to the list.
“With opportunities like the Brisbane 2032 Olympics on the horizon, ensuring Queensland has a stable and attractive investment environment has never been more important.
“Walking back from this tax sends an important signal that Government is listening and is willing to take on board the feedback of industry.”
