The Queensland Government is being urged to scrap its planned property tax increases amid concerns it will hurt the hip pockets of hard-working Queenslanders.
Property Council Queensland on Wednesday launched an appeal to the state to abandon the hikes, which are due to come into effect on July 1, arguing it could “risk wiping the state off the global investment map.”
Executive Director Chris Mountford, says the tax hikes will increase the cost of doing business, damage Queensland’s economic competitiveness and impact all Queenslanders.
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“With Queensland preparing to leverage the Commonwealth Games to attract new investment opportunities, these tax increases couldn’t come at a worse time,” Mr Mountford said.
Election campaign costings revealed the Government’s intention to introduce new land tax thresholds for aggregated land holdings with an unimproved value above $10 million.
Individuals, companies and trusts who are within this new threshold will be subjected to a 25% increase in the rate of land tax from 1 July 2018. The Government has also committed to increasing the stamp duty surcharge on foreign buyers of residential property from 3% to 7%.
“The end result of this decision will be higher business rents, higher costs for new homes, and damage to Queensland’s reputation as an investment destination,” Mr Mountford said.
“Businesses who lease premises from larger landlords can expect additional rental and occupancy costs.”
“New homebuyers can expect an additional $800-$1000 added to the cost of purchasing a new home.”
“We once were able to lure investment from interstate and overseas with attractive tax rates, but we now find ourselves uncompetitive with our southern neighbours.”
Liberal National Party Leader Deb Frecklington also slammed the hikes.
“The Premier calls it a ‘Robin Hood’ tax when in fact she is nothing more than the Sheriff of Nottingham.
“Queenslanders just want to get ahead but how can they when Labor’s only answer for its economic mismanagement is new taxes?”