Labor’s big new taxes to further erode Queensland’s competitiveness

The property industry has today poured scorn on the Labor Party’s decision to release its discriminatory election costings on the first day of the Ashes.

“The introduction of four, big new taxes- two of them on property- were of course going to raise the ire of the industry. What better way to hide them than to release them two days out from the election, while the Ashes are underway?” says Chris Mountford, Queensland Executive Director of the Property Council of Australia.

“Only six weeks ago, the Property Council voiced its concern with the integrity of the state’s statutory valuations system, following the Valuer-General’s decision not to value some of the state’s most significant local government areas in 2018,” Mr Mountford says.

“With a big new tax to be imposed on properties above $10 million, it is now clear why the Government is keen to lock in valuations issued at the peak of the market.

“These inflated valuations, coupled with a 2.5 per cent land tax surcharge, will deliver the Government far more than its fair share of taxes from the industry.

“This new tax is reminiscent of the 0.5 per cent ‘temporary’ land tax surcharge introduced in 2009, which property owners are still being slugged with.

The Property Council has reinforced that Government is playing a dangerous game by upping taxes on property investors.

“The local industry provides Queenslanders with jobs, houses, schools, shops, offices and leisure space, however we are also reliant on foreign investment in residential real estate to drive the Queensland economy,” Mr Mountford says.

“Despite promising at the 2015 election that it would not introduce any new taxes, fees or charges, the Labor Party introduced a new tax on foreign buyers in Queensland in 2016.

“This year, the Government broke its promise again when it introduced a further new tax on absentee landholders.

“Capital is mobile. If we keep pushing up the costs of investing here, ultimately another part of the globe will become a more attractive place to invest, and the money and associated jobs will be redirected.

“Queensland is not just competing with southern states. Like in cricket, we are competing with the rest of the world.

“Make no mistake- taxes on business and investment are ultimately taxes that will be borne by Queenslanders.”