Calls grow for independent review of Queensland property taxes
By
The Real Estate Institute of Queensland (REIQ) has renewed its call for an independent review of state property taxes following the release of a new report by the Property Council of Australia (PCA).
The PCA report suggests that Queensland’s tax settings on international institutional investment have resulted in the loss of 33,000 new homes and tens of thousands of jobs.
REIQ CEO Antonia Mercorella said the report highlights the need for a review of state property taxes and charges to be conducted independently, rather than by Treasury.
“This report emphasises how our taxes are working against Queenslanders and are not just failing to serve our local interests but actually undermining them,” Ms Mercorella said.
The REIQ has long opposed the Additional Foreign Acquirer Duty (AFAD) and the Foreign Land Tax Surcharge (FLTS), which impose additional taxes on foreign investors.
Ms Mercorella argued that these taxes deter global capital from being deployed in Queensland.
“The REIQ does not endorse a measure that is designed to limit investors buying and building housing in Queensland, whether they are local or foreign,” she said.
==
==
Ms Mercorella expressed concern that such measures limit potential investor activity and developer capital, which are crucial for delivering new housing supply.
“These 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,” she said.
Following the Treasurer’s announcement of a post-election review of state property taxes and charges, the REIQ called for clarity on the terms of reference, consultation with industry stakeholders, and an independent review process.
Ms Mercorella emphasised that for the review to be truly effective, it should be conducted independently, outside of Parliamentary influence, and published annually as part of the budget process.
The REIQ has echoed the PCA’s request for Treasury to ensure an annual, independent tax review process with proper industry engagement.
As Queensland grapples with housing supply issues, the debate over property taxes and their impact on investment and development is likely to continue.