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Following a bombardment of criticism on multiple fronts, Queensland Premier Annastacia Palaszczuk will dump the state’s controversial land tax revisions, it was confirmed on Friday (30 September).
After weeks of negative publicity and refusals by other states — most notably NSW Premier Dominic Perrottet — to co-operate in handing over any data relating to which Queensland residents owned property in their states, the controversial land tax reforms will be scrapped.
The tax, due to start next year, would calculate how much a Queensland property owner owed based on the total value of all their properties owned Australia-wide.
Economists assessed it would affect approximately 10,000 investors and recover almost $20 million a year, from 2023–24, for the Queensland state government.
Ms Palaszczuk is currently in Canberra for a national cabinet meeting, but a spokesperson for state Treasurer Cameron Dick confirmed the land tax changes had been dumped.
“The Treasurer stands by everything he’s said about land tax, but of course he accepts the decision the Premier has made after talking to other leaders,” the spokesperson explained.
Industry not surprised at the decision
Upon learning of the decision to dump the Queensland land tax reforms, Finance Brokers Association of Australia (FBAA) managing director Peter White commented: “I’m not surprised at this result as the ‘why do this’ never was clear,” he told Mortgage Business.
“Plus, as it was having a broad, negative response from many people in varying states — including Queensland — I am not surprised yet very pleased this is where it has landed,” Mr White stated.
“I believe the decision to not progress [with] this is the right and most appropriate one.”
Earlier, Mr White had effectively “called it”, having described the situation as “all very confusing”, and stating: “[A]s such, I feel [it] won’t play out and wouldn’t surprise me if it never enacts or happens when it’s due to commence.”
[Related: ‘No negative impact on brokers’: Qld land tax]
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