According to analysis by the Real Estate Institute of Queensland (REIQ), property taxes will contribute $45.2 billion to the state budget over the next four years (2025-26 to 2028-29), averaging $11.3 billion annually.
This includes $31.4 billion in stamp duty and $13.9 billion in land tax, significantly exceeding the $30.2 billion expected from mining royalties over the same period.
The government’s reliance on property owners to fund its operations is growing rapidly, with property tax revenue increasing at more than twice the rate of total government revenue.
Property taxes are projected to surge by 35.2 per cent compared to overall revenue growth of just 14.5 per cent during the four-year period.
REIQ CEO Antonia Mercorella said it was very concerning that the government was dependent on homeowners and property investors to fund its activities.
“Queensland is becoming over reliant on these taxes to fund essential jobs and services for Queensland,” Ms Mercorella said.
The state government’s budget reveals property owners will effectively be paying for the equivalent of 30,311 full-time public servants in 2025-26 alone.
This includes funding 13,053 healthcare workers, 8,541 education employees, 2,163 police officers, and 6,554 staff in other government agencies.
As property values continue to rise, more homeowners are being pushed into higher tax brackets, a phenomenon known as bracket creep.
The total value of Queensland’s residential real estate reached $2.15 trillion in March, according to the Australian Bureau of Statistics, representing a near doubling in value over the past five years.
This value increase has directly translated to higher tax burdens for property owners.
Property taxes are increasing their share of total taxation revenue, projected to rise from 33.2 per cent in 2023-24 to 39.2 per cent in 2028-29.
As a proportion of general government revenue, they will increase from 8.4 per cent to 12.3 per cent over the same period.
By 2028-29, the gap between what property owners contribute through taxes and what the mining sector pays in royalties is expected to reach a record $5.8 billion, marking a fundamental shift in how Queensland funds its operations.
The REIQ has expressed serious concerns about the growing tax burden on homeowners, particularly regarding bracket creep as rising property values push more properties into higher tax brackets.
“The substantial increase to property tax revenue is due to escalating property prices pushing properties into higher tax brackets – it’s a case of serious bracket creep,” Ms Mercorella said.
Stamp duty, in particular, is creating significant financial pressure on homeowners and would-be buyers, effectively penalising Queenslanders for basic housing decisions.
“Stamp duty is a regressive tax that adds significant upfront costs to property transactions, thereby dissuading turnover and mobility, and creating housing market inefficiencies by delaying downsizing for empty nesters and upsizing for young families,” Ms Mercorella said.
The REIQ is advocating for comprehensive reform to reduce the burden on property owners.
“Given the significance of our industry – not only as an incredible boon to the budget, but also as the business sector that helps put a roof over the heads of Queenslanders – we will continue advocating for conditions and policy settings that support a sustainable industry,” she said.
