REIQ cautiously supports proposed property tax review, calls for independent process

The Real Estate Institute of Queensland (REIQ) has responded to Treasurer Cameron Dick’s announcement of a post-election review of state property taxes and charges with measured support and several recommendations.

Key points:

1. REIQ CEO Antonia Mercorella welcomed the review’s focus on increasing housing supply but expressed concerns about potential market destabilization.
2. The REIQ is calling for a commitment from the State Government not to impose new or increased property taxes on investors, owner-occupiers, small businesses, or developers.
3. Mercorella emphasized the need for market stability and predictability to maintain investor confidence.
4. The REIQ recommends that the review be conducted independently, outside of Parliamentary influence.
5. The organization proposes making property tax reviews an annual part of the State Government’s budget process, given the property market’s importance to Queensland’s economic and social well-being.

Mercorella stated, “It’s promising that the goal of increasing housing supply has been identified as the focus of this review into state-based taxes and charges for the housing market.”

However, she cautioned that ambiguous announcements could negatively impact investor confidence and the commercial property sector, affecting employment opportunities.

The REIQ acknowledged that the review, first proposed at the Housing Summit in October 2022, is an important step. However, they stress the need for an independent process to ensure its effectiveness.

“Given how closely linked Queensland’s economic prosperity and social well-being is to the health of the property market, we would like to see this become a permanent part of the State Government’s remit to review the impact on property taxes each year and publish those as part of the budget process,” Mercorella added.

The REIQ’s response highlights the delicate balance between addressing housing supply issues and maintaining a stable, predictable property market environment.