QLD now more expensive than NSW
Land tax bills will nearly double with all property holdings over $5m taking a fresh hit as the Queensland Government handed down its 2020 budget.
The move was slammed by industry, with the peak property body warning it was "unjustifiable" and would make Queensland "uncompetitive".
Property Council Queensland executive director Chris Mountford said all property holdings worth $5m or more in the state would take a bigger hit.
"Today we have seen extraordinary increases in land tax, totalling an extra $778 million over the next four years," Mr Mountford said.
"This is nine new or increased taxes in under three years. And when it comes to tax competitiveness, land tax thresholds in Queensland have not been reviewed for a decade. And now Queensland's rates are far higher than NSW and Victoria."
He warned that "almost all of the properties that will be impacted by this tax hike are home to businesses employing thousands of Queenslanders in industries like manufacturing, tourism, logistics and trade."
He said "the reality is that land tax is paid - either directly or indirectly - by the business that operates on the land."
Property Tax Hikes since October 2016 by QLD Govt:
- A new 'additional foreign acquirer duty' on residential property;
- Increased the 'additional foreign acquirer duty' from 3 per cent to 7 per cent;
- Introduced a land tax surcharge on 'absentee' landowners;
- Increased the land tax surcharge from 1.5 per cent to 2 per cent for 'absentee' landowners;
- Extended the land tax surcharge to also include foreign companies and trusts;
- Introduced a new land tax category for aggregated holdings over $10m;
- Increased the rate of land tax for holdings over $10m from 1.75 to 2.0 cents (individuals) and 2.25 to 2.5 cents (companies);
- Again increased the rate of land tax for holdings over $10m, this time from 2.5 cents to 2.75 cents (companies).
(Source: Property Council Queensland)
He was critical of Queensland Premier Annastacia Palaszczuk and ministers "spruiking investment in the Sunshine State, but what they seem to forget is that an investment needs to stack up".
"It's the bottom line on the investor's spreadsheet that determines whether they invest in Queensland, or anywhere else in the world. This tax slug makes job-generating investment from offshore players in key sectors like tourism less likely in Queensland."
"Sadly, this is just the latest in a long line of tax hits for people who have chosen to invest in Queensland.