The Real Estate Institute of Queensland is calling for a commitment from both major political parties to not resurrect the multi-jurisdictional land tax proposal that plagued Queensland property investment, before plummeting like a lead balloon in 2022.
The peak body’s calls follow concerning comments in The Australian newspaper at the weekend that suggest the multi-jurisdictional tax regime may be a sleeping dog that’s been left to lie but could arise again in the wake of the State Government election in October.
REIQ CEO Antonia Mercorella said it was imperative for property investment confidence in Queensland that the controversial multi-jurisdictional land tax regime was left dead in the ground.
“This unprecedented regime proposed to hit property investors with state land tax based on the value of properties held across Australia – outside of Queensland borders where the tax is collected,” Ms Mercorella said.
“Putting this legislation to bed was the right decision for Queensland renters, investors and businesses but sadly, the ramifications of this looming legislation were already felt.
“Some damage was already done by the time the legislation was shelved, with widespread condemnation from current and prospective investors in Queensland.”
Ms Mercorella said that at the time there was collapse in loans to investors across the market in Queensland. Conversely, there was no real increase in first home buyer activity either.
“Similarly, we saw a number of investors divesting their Queensland based investment properties” she said.
“More recently we have seen the disastrous impacts that tinkering with the land tax regime in Victoria has had on investor activity which effectively flatlined.
“We dodged a bullet, but we cannot risk this regime making a comeback in Queensland.
“We are calling for a commitment from the Government to keep the failed land tax regime in the ground where it belongs.”
Ms Mercorella warned that should the State Government attempt to resurrect the retrograde tax after the election, it would be met with the same outrage and resistance.
“Property investors are sick and tired of being treated like a money pit, while simultaneously being expected to prop up housing supply,” she said.
