The new state land tax for Queensland investors will now be calculated using the total value of the property owner's Australian land.
Changes will take effect from 1 January 2023 and will be applied to land tax assessments in the 2023-24 tax year.
REIQ CEO Antonia Mercorella said Treasurer Cameron Dick slipped the Bill through parliament without proper legal and taxation advice from stakeholders.
Ms Mercorella said the REIQ and other stakeholders were given a one-off 10-day consultation period to respond.
"This new land tax regime is as unique as it is illogical," she said.
"There’s no other State or Territory that charges state land tax based on the value of properties held across Australia and outside the jurisdiction where the tax is collected. It’s unprecedented and unheard-of for a reason.
"It is irreconcilable that the Treasury expects to legitimately raise tax on the basis of value of property held outside of Queensland, for the purpose of funding infrastructure within Queensland."
Ms Mercorella said the new land tax regime will hurt Queensland landholders, renters, companies and small business in one fell swoop.
"This will likely send commercial rents through the roof, and given this tax is only triggered by Queensland property holdings, it sends the message to businesses to shut down shop and set up elsewhere to get the monkey off their back," Ms Mercorella said.
"Equally, given we are living in the tightest rental market in the history of our state, and 36% of our population rent their homes with the vast majority of housing supplied by private investors, one would assume that it’s not the time to risk rocking the boat of private residential rental stock."
According to REIQ, the change to the land tax Bill could result in a 332% increase in land tax.
"This is likely to have a detrimental impact on the appeal of investing in Queensland, particularly when you consider the cumulative effect of all the legislative reform investors are being hit with." Ms Mercorella said.
Image by Lukas via Pexels.
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