Queensland Government ignores repeated warnings about poorly conceived legislation  

QUEENSLANDERS WILL PAY MORE FOR HOUSING following last night’s rushed passage of legislation implementing the State Government’s new foreign investment tax.

Chris Mountford, Queensland Executive Director of the Property Council, says the tax is both poorly considered and poorly designed and will have a significant impact on the health of Queensland’s economy.

“This is not a tax on foreigners – this is a tax on Queenslanders,” Mr Mountford said.

“Some of Queensland’s largest and best known development companies, which collectively employ thousands of Queenslanders, will be caught in the net and considered ‘foreigners’ by the definition in the legislation.  

“This means they will need to pay the additional 3% surcharge when they purchase property.

“There are only two possible outcomes as a result. Either projects won’t proceed because of the additional cost impost. This means fewer jobs for Queenslanders.

“Or if projects do proceed, the costs will have to be passed on.  In this case, the impact of the tax will be felt by Queensland homebuyers, not foreign homebuyers.”

“It is expected the tax could add as much as $8000 to a newly constructed family home in Queensland.

The Government was inundated yesterday by representations from some of Queensland’s most recognisable property companies outlining the impact that the new tax with have on their operations and customers and asking the Government to defer passage of the Bill until consultation could take place on the design of the new tax.

“The Government was been made well aware of the inherent risks of this new tax its potential impact on it will have on Queensland homebuyers and construction workers,” Mr Mountford said.

“Their decision to proceed with the passage of the legislation as it stood, rather than consult on an improved way forward, was a political one and not one based on the best interest of Queenslanders.

“This new tax represents a huge, and immediate, risk to property investment in Queensland,” Mr Mountford said.