Property industry calls for repeal of ‘illogical’ land tax

Queensland land tax reform will deliver a ‘king hit’ to investment in the Sunshine State, property insiders have warned.
The Real Estate Institute of Queensland (REIQ) has called for repeal of the ‘illogical’ new land tax regime which will tax owners of investment properties held in other states from 2023.
REIQ CEO Antonia Mercorella said the Bill was pushed through parliament without proper legal and taxation advice.
REIQ CEO Antonia Mercorella
“This new land tax regime is as unique as it is illogical,” Ms Mercorella said.
“There’s no other state or territory that charges state land tax based on the value of properties held across Australia and outside the jurisdiction where the tax is collected. It’s unprecedented and unheard of for a reason.
“It is irreconcilable that the Treasury expects to legitimately raise tax on the basis of value of property held outside of Qld, for the purpose of funding infrastructure within Qld,” she said.
A spokesperson for the Qld treasurer said Revenue Legislation Amendment Bill was passed unanimously in parliament in June 2022, with the legislation aiming to close a “land tax loophole” where interstate investors who owned properties across several states can access the tax-free threshold multiple times.
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The new law will come into effect on January 1 next year and apply to Qld land tax assessments in the 2023-24 financial year.
Buyers agent Oliver Dunstan, of Rose and Jones, said the reform would bring, “less rentals and more pain for tenants”, coming at a time where the state’s rental market continued to experience record low vacancy.
“This policy will see investors who own property elsewhere paying huge amounts of additional tax for their properties in Qld, while also being taxed for their investments in other states,” Mr Dunstan said.
Buyers agent Oliver Dunstan, of Rose and Jones
“Unfortunately, once this takes effect, we will see typical mum and dad investors and renters bearing the brunt of this policy. Some investors will be forced to sell their Qld investments due to affordability, whil will push tenants from their homes.
“This will shrink an already undersupplied rental market and in turn push rental prices up,” he said.
Landlords reliant on cashflow would need to increase rents to offset higher ownership costs, Mr Dunstan said.
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