Property Council Continues Land Tax Advocacy
The Property Council has been undertaking advocacy efforts to minimise the economic damage of Queensland Government’s increased land tax and foreign surcharge.
Recent increases, implemented through the Queensland State Budget 2019/20
, will see Queensland facing a significantly broader foreign land tax surcharge than the comparable surcharges in NSW and Victoria, with far more landowners captured.
The Property Council has provided the Office of State Revenue with a comprehensive submission
, which seeks broader exemptions from the new surcharge through an ex gratia relief guideline. The Property Council has sought:
• An exemption for listed entities and wholesale trusts, as per the Victorian surcharge.
• An avenue for ex gratia relief for both residential and non-residential owners and investors who can demonstrate a ‘significant contribution to the local economy’.
• A longer period for ex gratia relief, and the opportunity to renew and extend exemptions.
• Recognition of the need to extend relief beyond the development phase for some projects.
• Proportional treatment for co-owners.
The Property Council is asking affected landholders to write to the Treasurer, to express what the tax increases will mean for their company’s operations and future investment decisions.
In anticipation of the challenge for landlords in communicating the impact of this tax on their tenants, the Property Council has produced a notice of advice that members can utilise to keep their tenants informed about the likely impact on the Government’s land tax increases on their occupancy costs:
• Tenant notice of advice - Australian entity version
• Tenant notice of advice - foreign entity version
The Government’s intention is to finalise the exemption guideline before land tax assessment notices are issued at the end of July.
The Property Council will continue advocating on behalf of the property industry.
Further information on the Property Council’s recent advocacy work can be found here.
For further information on the Property Council's Tenant notice of advice documents, contact the Queensland Property Council on 07 3225 3000.