The Real Estate Institute of Queensland (REIQ) says a new research report from the Property Council of Australia (PCA) highlights the need for the review of state property taxes and charges to be taken out of Treasury and into independent hands.<\/p>\n\n\n\n
The report indicates 33,000 new homes and tens of thousands of jobs have been lost due to Queensland\u2019s tax settings towards international institutional investment.<\/p>\n\n\n\n
The REIQ has long-opposed<\/a> both the Additional Foreign Acquirer Duty (AFAD) – now an eight per cent surcharge on stamp duty, and the Foreign Land Tax Surcharge (FLTS) – now a three per cent surcharge on land tax.<\/p>\n\n\n\n REIQ CEO Antonia Mercorella said that both additional taxes on foreign investors \u2013 who are already being taxed at a Federal level – act as a deterrent for global capital to be deployed in Queensland.<\/p>\n\n\n\n \u201cThe REIQ does not endorse a measure that is designed to limit investors buying and building housing in Queensland, whether they are local or foreign,\u201d Ms Mercorella said.<\/p>\n\n\n\n \u201cThese taxes effectively close the door on being able to access foreign funds, when there\u2019s not enough private capital in Australia alone to fuel the housing development that\u2019s desperately needed.<\/p>\n\n\n\n \u201cOur view is that Queensland\u2019s housing market would ultimately benefit from increased investors activity and developer capital, and when measures are introduced to limit that potential, it\u2019s concerning.<\/p>\n\n\n\n \u201cThese punitive measures rob capital from local builders and developers who are instrumental in delivering new housing supply and this leads to downward pressure on approvals and shortfalls in housing.\u201d<\/p>\n\n\n\n Following the Treasurer\u2019s announcement of a review of the impact of state property taxes and charges to be conducted after the election, the REIQ was quick to call<\/a> for clarity on the terms of reference of the review, consultation with industry stakeholders, and most importantly, an independent review process.<\/p>\n\n\n\n Ms Mercorella said for the review to be truly effective, it should be conducted independently, outside of Parliamentary influence, and published each year as part of the budget process.<\/p>\n\n\n\n \u201cThis report emphasises how our taxes are working against Queenslanders and are not just failing to serve our local interests but actually undermining them,\u201d she said.<\/p>\n\n\n\n \u201cIn line with this, we renew our calls and echo those of the PCA asking for Treasury to ensure an annual, truly independent tax review process with proper industry engagement.\u201d<\/p>\n\n\n\n