Housing supply

Queensland property tax ‘could jeopardize housing supply’

An industry body warns that controversial new property taxes could have a serious impact on Queensland’s overstretched rental market.

The fear is that the new tax system will discourage interstate developers from investing in Queensland’s housing market.

Changes made earlier this year mean that property tax will now be calculated based on land held across Australia, not just in the sunshine state.

Property owners would have to declare their interests nationwide to determine if they exceeded the tax exemption threshold of $600,000 for individuals and $350,000 for businesses and trustees. This will then be used to determine property tax rates on Queensland properties.

Palaszczuk’s government said the new tax would only affect about 10,000 landowners and bring in about $20 million a year from June 2023.

Queensland Property Council of Australia’s executive director, Jen Willaims, said “the Queensland Government’s hastily implemented reform risks triggering massive uncertainty and adding further pressure to an overstretched rental market. “.

“The Queensland Government’s introduction of a new ‘interstate property tax’ goes against its commitment to addressing the housing crisis, particularly given its likely impact on the rental market,” 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 it most… the practical implications and costs associated with the interstate property tax model remain to be understood.

“Going forward with this change will jeopardize the foundations the government has laid in recent weeks to ensure Queensland is the first to deliver safe, affordable and fit-for-use housing.”

But there has been speculation about whether the new property taxes would have a direct impact on pressures on rent affordability, with many industry players denying the claims.

The chief executive of homelessness advocacy group Micah Projects, Karyn Walsh, recently spoke out and said rents were determined by supply and demand and dismissed claims about property taxes impacting affordability.

Queensland Treasurer Cameron Dick said the state already has the landowner data needed to enforce the new property tax next year, following the threat from the NSW Premier , Dominic Perrotet, to retain information on land ownership.

The treasurer said the government had no plans to roll back new legislation passed earlier this year.

The Queensland Government will host an Affordable Housing Summit in October, as the state grows concerned about homelessness and a severe lack of affordable housing.