The Queensland Government will institute a post-election review of Queensland’s tax settings that affect the housing market, with a view to further increasing housing supply.
The review will look at potential reforms to state-based taxes and charges, and how those changes might affect housing supply, state revenues, and ongoing fiscal sustainability.
Deputy Premier and Treasurer Cameron Dick said Queensland Treasury is always looking at Queensland’s tax settings to ensure that Queensland remains “nationally and globally competitive”.
“But given current housing market constraints, now is the right time to develop and undertake a review of the impact that state taxes and charges have on housing supply and the property sector.
“This review will need to consider potential unintended consequences that changing settings could have on property prices.
“It will also look at the affect that changes in revenue settings have on the state’s ongoing fiscal sustainability.
“Given that housing availability will continue to be a challenge for any future Queensland Government, as requested by the Property Council, this review would be conducted after this year’s State Election, with its results to be considered as part of the 2024-25 Queensland Budget.”
Property Council’s Queensland Executive Director Jess Caire welcomed the announcement but said collaboration and consultation must be at the heart of the review.
“As with any review the devil will be in the detail, and it is critical that industry and government work together to ensure the review doesn’t result in any unintended consequences,” she said.
“What we don’t want to see is increased taxes across other property sectors or any new taxes levied on the industry.”
Following the release of the Property Council’s ‘Beyond Reach’ report on 24 June, which called for a review of Queensland’s tax settings, the Queensland Treasurer announced on Monday 1 July that the government would instigate a review of the state’s tax settings.
“The government has introduced 12 new or increased property taxes since 2007, if we are to ever attract the investment we need, this has to stop.
“Taxing the very industry that delivers the homes, critical infrastructure, offices, shops, and industrial developments our state needs within an inch of its life is counterproductive.
“It is imperative that this review is conducted independently – we look forward to working with the government to work through the details of the review to make sure the impact on the property ecosystem and on Queensland households is thoroughly understood.
“This includes including setting the review’s terms of reference, overseeing the review at key milestones, and agreeing draft recommendations to government.
“Genuine consultation with industry, who are at the frontline of delivering new housing supply, will be essential to this process so we don’t see another example of robbing Peter to pay Paul,” she said.
The Property Council’s Queensland Division has long called for a review of the state’s property taxes to ensure they support the delivery of new development rather than add costs to Queenslanders.
“There has never been a more important time to work together and push for meaningful reform that resuscitates our ailing housing supply and adopts a ‘do no harm’ approach to industry and Queenslanders,” Ms Caire said.
“We must ensure that this review is done in a transparent and collaborative fashion with industry to ensure that 12 months down the track our state is not in the same position we’re in now,” she said.
At a Property Council lunch today, the Queensland Leader of the Opposition outlined that tax certainty needs to be front of mind to attract the investment Queensland needs.
“Industry needs certainty to ensure Queensland is an attractive investment destination for investors from across the country and across the globe,” Ms Caire said.