Taxes should not undermine Queensland - Call for independent review

The Real Estate Institute of Queensland (REIQ) says a new research report from the Property Council of Australia (PCA) highlights the need for the review of state property taxes and charges to be taken out of Treasury and into independent hands.

The report indicates 33,000 new homes and tens of thousands of jobs have been lost due to Queensland’s tax settings towards international institutional investment.

The REIQ has long-opposed both the Additional Foreign Acquirer Duty (AFAD) - now an eight per cent surcharge on stamp duty, and the Foreign Land Tax Surcharge (FLTS) - now a three per cent surcharge on land tax. 

REIQ CEO Antonia Mercorella said that both additional taxes on foreign investors – who are already being taxed at a Federal level - act as a deterrent for global capital to be deployed in Queensland.

“The REIQ does not endorse a measure that is designed to limit investors buying and building housing in Queensland, whether they are local or foreign,” Ms Mercorella said.

“These taxes effectively close the door on being able to access foreign funds, when there’s not enough private capital in Australia alone to fuel the housing development that’s desperately needed.

“Our view is that Queensland’s housing market would ultimately benefit from increased investors activity and developer capital, and when measures are introduced to limit that potential, it’s concerning.

“These punitive measures rob capital from local builders and developers who are instrumental in delivering new housing supply and this leads to downward pressure on approvals and shortfalls in housing.”

Following the Treasurer’s announcement of a review of the impact of state property taxes and charges to be conducted after the election, the REIQ was quick to call for clarity on the terms of reference of the review, consultation with industry stakeholders, and most importantly, an independent review process.

Ms Mercorella said for the review to be truly effective, it should be conducted independently, outside of Parliamentary influence, and published each year as part of the budget process.

“This report emphasises how our taxes are working against Queenslanders and are not just failing to serve our local interests but actually undermining them,” she said.

“In line with this, we renew our calls and echo those of the PCA asking for Treasury to ensure an annual, truly independent tax review process with proper industry engagement.”