REIQ urges no revival of controversial multi-jurisdictional land tax proposal

The Real Estate Institute of Queensland (REIQ) has called on both major political parties to commit to not reintroducing the multi-jurisdictional land tax proposal, which previously stirred significant controversy in the Queensland property market. Antonia Mercorella, CEO of REIQ, emphasized the importance of maintaining investor confidence, describing the proposal as detrimental to Queensland renters, investors, and businesses.

“This unprecedented regime proposed to hit property investors with state land tax based on the value of properties held across Australia, outside of Queensland borders where the tax is collected,” said Ms. Mercorella. She noted that the initial introduction of this legislation had already caused considerable disruption, resulting in a decline in investment loans and no significant increase in first home buyer activity in Queensland.

The REIQ also highlighted the adverse effects observed in Victoria, where changes to the land tax regime severely impacted investor activity. “We dodged a bullet but cannot risk this regime making a comeback in Queensland,” Ms. Mercorella added.

The organization warned that any attempt to resurrect this tax after the upcoming State Government election would face strong opposition. “Property investors are sick and tired of being treated like a money pit while simultaneously being expected to prop up housing supply,” she remarked, arguing that imposing heavy taxes and unbalanced legislation on investors is not a viable solution to the Government’s fiscal challenges.

The REIQ’s stance is a reaction to recent discussions about potentially revisiting the tax, sparked by comments reported in The Australian. The proposal was initially set to commence in January 2023 but was shelved following widespread condemnation and a concerted lobbying effort led by REIQ, culminating in its repeal in November 2022.