The Property Council’s Queensland division has hit back at the recent announcement from the Government that next week’s budget will raise the ‘apartment killer’ taxes.
Next week’s Queensland State Budget will see the Foreign Land Tax Surcharge increased to 3%, while the Additional Foreign Acquirer Duty will jump to 8% – placing an unmitigated strain on apartment projects across the state.
Executive Director of the Property Council’s Queensland arm Jess Caire reflects on the harmful impact that the increase will inevitably have on housing supply and delivery.
“Today’s announcement to lift the first home buyers ceiling and funding it through increasing the foreign land tax surcharge is nothing short of a race to the bottom.
“It’s giving with one hand and taking away with the other – this will see first home buyers and renters alike facing a more competitive and more expensive market.
“What’s the point of raising the concession if there’s no one to build it? Given the Queensland Government reaped in a whopping $3.5bn windfall in transfer duty alone in last three years, this ceiling could be raised without imposing any further taxes.
“Queensland unlike New South Wales taxes companies that have a portion of foreign ownership – the very companies that build the new homes and apartments that the first homes owners who received this concession today will buy. We are well and truly losing the State of Origin.
“This is just another example of double dealing. Increasing a tax on these companies will only drive up the cost of housing further squeezing first home buyers out of the market.”
Jess Caire, Executive Director – Queensland, The Property Council of Australia
The Property Council has further criticised the move, not just for the impact of this increase on first home buyers and renters – but for the impact on investor confidence.
“No matter how this is packaged up – it’s a tax on housing.
“This increase coupled with our already high additional foreign acquirer duty makes us completely uncompetitive to the capital we should be proactively trying to attract to Queensland.
“It’s a long bow draw to say we are now in line with New South Wales – they don’t tax companies, just individuals. This just sends a message that Queensland is not open for business.
“Taxing the industry that delivers housing in a housing crisis is nonsensical – it’s like taxing water in a drought.
“To increase this tax with no industry consultation to understand the true impact is irresponsible.”
Jess Caire, Executive Director – Queensland, The Property Council of Australia
As concerns grow around the lack of housing, in Australia and globally, Jess also states that the increase will add to this burden and make it even more difficult for housing providers and developers to deliver new and essential homes.
“This shows a lack of understanding about the development pipeline as more often than not, it’s companies with a portion of foreign ownership or overseas institutional investment that are delivering the homes our state desperately needs.
“So, this increase will just see it become harder to deliver homes and costs to buyers and renters increased.
“If this was really about getting people into homes faster than excluding companies that deliver the homes we need – as is done in New South Wales – would be the first step.
“Until that happens all it is, is a money grab that will drive up house prices – costing renters and first home buyers. We can’t tax our way out of a crisis – this budget should be the platform that instils confidence to industry rather than increasing costs.”
Jess Caire, Executive Director – Queensland, The Property Council of Australia
