Labor’s tax on Queensland businesses
The Property Council is warning that the Labor Party’s proposal to increase land tax will have a devastating flow-on impact for businesses and communities across Queensland.
“There is no question that Labor’s plan to increase land tax is a tax on Queensland businesses already struggling under the weight of increased costs like high electricity prices,” Property Council Queensland Executive Director, Chris Mountford, said.
“It is not accurate to suggest that this tax will only impact the big end of town.”
“We have heard all through this campaign that Queensland businesses are worried about increasing costs, and now they can add land tax to that list of worries.”
“Many of the properties that will be impacted by this tax are commercial properties that are home to Queensland businesses employing thousands of Queenslanders.”
“In 2009 the then Labor Government introduced laws that allow land tax to be passed onto many tenants through their lease arrangements. As such, this tax increase is likely to see commercial rents spike for Queensland small businesses.”
“A tax on the land that a business is operating, is inevitably a tax on that business.”
“The Labor Party must know that this tax runs the real risk of making it harder and more costly to run a business in Queensland.”
“This means it’s harder to grow, employ more staff, or even just stay afloat.”
“Take for example the Radius Industrial Park at Larapinta, or the North Lakes Business Park. These properties are made up of small business owners and mum-and-dad owner occupiers who now have to find a way to pay for these drastic increases to the cost of doing business in Queensland.”
“This big new tax also has the potential to impact on mum-and dad investors in body-corporate schemes throughout the state.”
“As an example, Kelvin Grove Urban Village- which is jointly owned by many mum-and-dad investors- is valued at $58 million.”
“Many investors in Kelvin Grove already pay land tax on their share of the Village. As this property is valued at more than $10 million, does this mean their land tax rates will also increase?”
“This is one of many large community title schemes across the state that may be affected.”
“To therefore say that less than one per cent of Queenslanders will be impacted is wrong. The direct and indirect impact of this decision will be felt across all communities.”
“Queensland used to be known for its low tax status and business friendly environment. This tax will be yet another erosion of our state’s historic competitiveness.”
“Using new property taxes to plug budget holes is an incredibly short-sighted and cynical move that will have a real impact on Queensland businesses and the communities in which they operate.”