QLD Land Tax Backflip a ‘Win for Mum and Dad Investors’, Renters

Queensland’s backflip on controversial land tax changes has been welcomed across the country, with “thousands of mum and dad investors” set to consider buying in the Sunshine State again.

Queensland executive director of the Property Council Jen Williams applauded the state government’s change of heart, saying it was the right step given its expected impact on rental affordability and investor sentiment.

“As details emerged of how the new tax would be implemented, it became clearer just how untenable it would be,” Ms Williams said.

“The complexity of the tax and its reliance on the self-disclosure of individuals and data-sharing of other states reinforces this plan should be completely scrapped, and not just put on the shelf until a future day.”

The Courier-Mail broke the news Friday morning that Qld Premier Annastacia Palaszczuk, who was in Canberra for an in person meeting of national cabinet, made the decision “on Thursday night to shelve the scheme after speaking to her interstate counterparts”.

PropTrack executive manager economic research Cameron Kusher said “it seems common sense has finally prevailed in Qld after immense pressure from industry and investors”.

“It was very clear that this policy was going to drive current investors away from Qld and discourage future investment from the state which would only harm the Qld economy.”

“The good news is that, upon this news, investors now have certainty and with property prices lower than those in NSW, Vic and ACT and rental returns higher than in those states Qld now remains an attractive market for residential property investment which is much needed given the state is seeing the tightest rental conditions on record”.

InvestorKit founder Arjun Paliwal said the “backflip” was great news for Qld renters as well as mum and dad property investors.

“Investors are needed desperately in Queensland to shorten the length of how long this rental crises goes on for tenants by purchasing and creating more rental stock.”

“Removal of this poorly planned policy will no doubt clear the confused minds of many and as a result we are now expecting thousands of mum and dad investors to be open to Queensland investing once again.”

“Had this policy proceeded, investors would have continued an exit at rapid speeds and we would have seen the total rental pool continue to shrink. Rents would have then continued their substantial increases.”

“This is great news for QLD renters and also mum and dad property investors, in an already tight rental market this would have taken away many more rental properties had it gone ahead.”

“Removal of this poorly planned policy will no doubt clear the confused minds of many and as a result we are now expecting thousands of mum and dad investors to be open to Queensland investing once again.”

“Had this policy proceeded, investors would have continued an exit at rapid speeds and we would have seen the total rental pool continue to shrink. Rents would have then continued their substantial increases.”

“This is great news for QLD renters and also mum and dad property investors, in an already tight rental market this would have taken away many more rental properties had it gone ahead.”

“Investors have been worried about this change coming and they’ll be able to breathe a sigh of relief with (Friday’s) announcement. Hopefully this ends the uncertainty that’s faced Queensland buyers and property owners and will help to stabilise the market.”

“Brisbane particularly has continued to perform strongly this year with annual growth of 16.8 per cent in the September quarter compared to Sydney and Melbourne which are showing decline.”

Developers have also welcomed the shift, with Rocklea-based Madsen Property director Ken Madsen saying “finally the message seems to have gotten through”.

“The Qld Government has just announced that they are shelving the plan to include interstate property in the calculation of Qld land tax. I can only hope the Property Council of Australia and the REIQ stay alert to any other “loophole closing” ideas by this government”.

Ms Williams said “over the past few weeks, we have seen the Queensland Government take swift and decisive action to address the state’s housing crisis, with the shelving of this tax now added to the list”.

“With opportunities like the Brisbane 2032 Olympics on the horizon, ensuring Queensland has a stable and attractive investment environment has never been more important,” she said.

“Walking back from this tax sends an important signal that Government is listening and is willing to take on board the feedback of industry.”

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