Additional Foreign Acquirer Duty Update

With slightly over a month to go before the Queensland Government’s new Additional Foreign Acquirer Duty (AFAD) comes into effect on 1 October, the Government is consulting with the Property Council on the development of guidelines to support the ex gratia exemption framework to accompany this new tax.

The Property Council is working to achieve an exemption framework – similar to the Victorian model – which would minimise the impact of the tax on the Queensland economy, Queensland jobs and Queensland homebuyers.

Our first preference is to amend the legislation to exempt developers from the tax entirely, as in its current format, the tax will capture some of Queensland’s largest and best known development companies, which collectively employ thousands of Queenslanders.  The Property Council has been vocal in warning the Government that tax will have a significant impact on the Queensland economy.

Exemptions are being sought from the new tax for companies delivering much needed housing stock for Queensland, and particularly for those providing residential uses with a distinct community value such as retirement villages and student accommodation.

The guidelines are expected to be finalised and publicly released ahead of the 1 October start date.