Foreign investment decline

In the lead up to the 2018/19 State Budget, the Property Council has released new research highlighting the economic importance of foreign property investment to the Queensland economy.

Research from the AEC Group, commissioned by the Property Council, has estimated that a decline in foreign investment in Queensland since 2016, has equated to a decrease in Gross State Product of between $2.4 billion and $3.9 billion. 

The decline in overseas capital reaching Queensland has reduced the amount of jobs supported by the local property sector by between 17,800 and 29,200 full time equivalent positions.

While a multitude of factors have affected the reduction in foreign investment, the introduction of the 3% Additional Foreign Acquirer Duty (AFAD) in 2016 has contributed to this contraction. 

The Property Council has warned the State Government of the potential economic impact of further increasing the AFAD to 7%, a move expected in the State Budget.

The analysis indicates that the revenue expected to have been collected through the foreign investor tax equated to less than 1% of the overseas economic contribution Queensland lost between 2015-16 and 2016-17.

The full report can be accessed here.