MYFER: Queensland land tax exemptions
The Queensland Government has confirmed in the Mid-Year Fiscal and Economic Review that it will introduce a more expansive foreign land tax surcharge exemption framework than was originally forecast in the June Budget.
Property Council Queensland Executive Director, Chris Mountford, said the organisation had been strongly advocating to the Government about the importance of this exemption framework in reducing the impact of the surcharge on Queensland’s investment competitiveness.
“Overseas investors play a crucial role in Queensland’s economy, funding job-creating local projects and building the state’s next generation of homes, shops, offices, industrial facilities, tourism assets and social infrastructure,” Mr Mountford said.
“The industry has been clear that this new tax risked significantly disincentivising investment and hindering economic growth in Queensland.
“And while it certainly remains our view that these types of taxes are ill conceived, we do acknowledge that the Government has followed through on its commitment to consult with industry to develop an exemption guideline to reduce the overall impact of the tax hike.
“Today’s announcement is an important development in our ongoing discussions to finalise the framework, which we expect will be completed in the new year.
“We expect that the exemptions will apply to listed entities and widely-held trusts, and to developments and business operations that are deemed to make a significant economic contribution to Queensland. We understand that the exemptions broadly align with similar exemptions in Victoria.
“The decision to align with Victoria will provide clarity to investors about where they stand in Queensland. It is important to note however that Victoria is the only other state to impose such as broad ranging surcharge, so it remains the case that all other Australian jurisdictions will remain relatively better positioned to welcome job-generating foreign investment.