Queensland’s budget is “more business-as-usual” than an investment in “big thinking” says Property Council executive director Chris Mountford.
Three key takeaways:
- Delivering his first budget on Tuesday, Queensland treasurer Cameron Dick said the state’s debt levels will reach almost $130 billion within four years
- Despite build-to-rent’s role as a powerful economic lever, the Queensland budget fails to incentivise the new asset class
- The Property Council’s Chris Mountford says the budget is “yet another missed opportunity” for Queensland to attract private sector investment needed to create jobs and encourage new revenue streams.
Mountford says Queensland’s biggest competitors – New South Wales and Victoria – have adopted “big thinking” and put forward “ambitious budgets” that focus on infrastructure, tax incentives and major reforms. These budgets have the “unashamed intention of spurring on private sector investment”.
In contrast, Mountford says Queensland’s budget fails to tackle the challenges, and cites the “lack of action” on build-to-rent is a prime example.
“New South Wales and Victoria have both halved land tax for these projects and removed foreign surcharges to attract institutional investment,” Mountford says.
“Put simply, a decision not to match these incentives in Queensland means we are letting southern states win the fight for job-generating investment.”
The National Housing Finance and Investment Corporation’s research unit has identified residential construction as the second largest economic multiplier of all the 114 industries that make up the Australian economy.
Nine jobs supported are for every $1 million spent on residential construction, NHFIC research finds.
“With Queensland set to be the beneficiary of unprecedented interstate migration, build-to-rent is exactly the type of private sector project we should be seeking to attract.”
Queensland’s handling of the health crisis has put the state at an advantage, Mountford adds.
“Sadly, instead of capitalising on this advantage, the budget places us squarely at the back of the pack when it comes to investment attraction.”
The Property Council continues to champion big, bold ideas to drive investment, jobs and opportunities, Mountford concludes.