The Queensland Government’s plan to introduce a land tax that encompasses property in other states may have hit a snag, with New South Wales Premier Dominic Perrottet saying he won’t hand over the property data.
On Monday, Mr Perrottet labelled the tax “lazy” and told the media his government would reject any request from Queensland Labor to help facilitate the policy.
“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.
The Perrottet government has also questioned whether a Queensland tax that crosses state borders is constitutional.
Due to be introduced in June next year, the tax is based not just on the value of an investor’s Queensland land but also on the statutory value of any interstate land they own.
Tipped to raise $20 million a year, it has been met with widespread disapproval, with the Real Estate Institute of Queensland labelling it “illogical” and claiming it will affect investment in the state.
The Property Council of Australia (PCA) has also condemned the move, noting it will trigger uncertainty and add “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,” PCA Queensland Executive Director Jen 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.”
Meanwhile, CPA Australia has also weighed in on the debate, with the accounting body calling on other states to follow NSW’s lead.
“This is an example of double taxation at its worst,” CPA Australia Senior Manager Tax Policy, Elinor Kasapidis said.
“Landlords with property in other states and territories already pay land tax to those governments where the property is located.
“Queensland is in effect taxing them again by imposing higher land taxes based on the value of their property holdings outside Queensland. This is unfair and nothing more than a revenue grab. It’s disappointing to see Queensland going down this path.”
“We support the NSW Premier’s declaration that NSW will not go down the same path and we encourage other states and territories to commit to this position too.”
