An industry body is warning controversial new land taxes could severely impact Queensland’s overburdened rental market.
The fear is the new tax system will dis-incentivise interstate developers from investing in the Queensland housing market.
Changes made earlier this year mean land tax will now be calculated based on land owned across Australia, not just in the sunshine state.
Landowners would need to declare their interests across the country to determine whether they exceeded the tax-free threshold of $600,000 for individuals and $350,000 for companies and trustees. This will then be used to determine land tax rates on Queensland properties.
The Palaszczuk government said the new tax would only affect about 10,000 landholders and raise about $20 million per annum from June, 2023.
Property Council of Australia’s Queensland executive director Jen Willaims said the Queensland government’s “hastily implemented reform risks triggering mass uncertainty and adding further pressure to an overburdened rental market”.
“The Queensland government’s introduction of a new ‘interstate land tax’ runs counter to its commitment to addressing the housing crisis, particularly given its likely impact on the rental market,” Williams said.
“More than anything, this new tax sends the wrong signal to current and future investors in Queensland, at a time when we need them the most … the practical implications and costs associated with the interstate land tax model are yet to be understood.
“Pushing ahead with this change will jeopardise the foundations the government has laid in recent weeks to ensure that Queensland is a first mover in ensuring safe, affordable and fit-for-purpose housing.”
But there has been some conjecture over if the new land taxes would directly impact rental affordability pressures, with many in the industry rubbishing the claims.
Homelessness advocacy group Micah Projects chief executive Karyn Walsh spoke out recently and said rents were supply and demand driven and rejected the assertions around land taxes impacting affordability.
Queensland treasurer Cameron Dick said the state already had the landholder data needed to apply the new land tax next year, following the New South Wales premier Dominic Perrotet’s threat to withhold land ownership information.
The treasurer said the government had no intention to back down on the new measures legislated earlier this year.
The Queensland government will hold an affordable housing summit in October, amid growing concern in the state about homelessness and a severe lack of affordable housing.
