The Queensland Government has shelved its controversial land tax, with the state’s peak real estate body saying the decision was the right one to make.
Real Estate Institute of Queensland Chief Executive Officer Antonia Mercorella said the tax, which stood to bring the State Government about $20 million a year, could have damaged property investor confidence at a time when vacancy rates were at their tightest in history.
“Abandoning the contentious land tax regime will bring confidence back to the property investor market in a time of great uncertainty,” she said.
“The REIQ has led the charge against this land tax since December last year and we worked with various stakeholders to fight the changes.
“To send shockwaves through the private housing investment market during a rental crisis was unprecedented and illogical.
“The land tax changes would have also potentially impacted commercial property investment and national employers with Queensland domiciled premises.
“We appreciate the government’s move to shelve this retrograde tax reform and look forward to working with them at the Housing Summit in October to address the state’s housing supply issues.”
According to The Australian, Queensland Premier Annastacia Palaszczuk made the call to shelve the land tax after speaking with interstate leaders in Canberra on Thursday night.
It comes after the NSW, Tasmania and Northern Territory governments objected to the tax.
Under the land tax, Queensland property investors with more than three properties, including some in other states, would have had their land tax bill assessed on the value of not just their Queensland properties, but their nationwide holdings.
The tax was due to come into effect on July 1 next year.
Earlier this week, NSW Premier Dominic Perrottet labelled the tax “lazy” and said his government would reject any request from Queensland Labor to help facilitate the policy, including handing over property data.
“This is a tax implemented by a state that impacts the residents of NSW. It’s wrong, and we’re not going to comply with it,” Mr Perrottet said on Monday.
Tasmanian Treasurer Michael Ferguson said his government took the privacy of its taxpayers extremely seriously, while Northern Territory leader Eva Lawler said releasing property data to Queensland would be “inconsistent with the Territory’s policy of not imposing land tax”.