Property industry uncertainty
The Property Council of Australia has warned the property industry that the industry faces unwelcome uncertainty in Queensland on the back of the Labor party’s win at the State election.
The peak industry body for the property sectors fears two big new taxes on land acquisitions and foreign investment will impact negatively on the Queensland economy, as they were announced late in the Labor party’s election campaign without adequate consultation.
The peak body said, “The Property Council of Australia congratulates the Queensland Labor Party on their election victory.”
However, “The end of a fortnight of post-election uncertainty will be welcomed by the state’s business community,” Property Council Queensland Executive Director, Chris Mountford, said.
“While the result is now clear, uncertainty will remain for Queensland’s property industry which faces the prospect of two big new taxes revealed in Labor’s costing documents on the eve of the election.”
“The Labor Party have proposed to increase the Land Tax rates by 25 per cent on holdings of more than $10 million. The foreign investor tax is also proposed to be increased from 3 per cent to 7 per cent.
“These tax proposals are short on detail, but long on risk to our state’s economy,” Mr. Mountford said
“Put simply, these taxes – if implemented – would be job-killers.”
“It is not accurate to suggest that they will only impact the big end of town, they will affect a large number of Queensland businesses and Queensland home buyers.”
“A tax on the land that a business is operating is inevitably a tax on that business, and these proposals will have a devastating flow-on effect for business rents across Queensland.”
“Taxes on business and investment are ultimately taxes that will be borne by Queenslanders.”
“Now that the Government is returned, the Property Council is looking forward to working to have these proposals reconsidered.”
“Despite uncertainty around new property taxes, the re-election of the Labor Government will provide the industry confidence on a number of other areas of policy.
“The Property Council has been highly supportive of the Government’s Cross River Rail project, and Labor’s proposed extension of the First Home Buyers’ Grant at the current rate.” Mr. Mountford said.
“Labor’s commitment to deliver better environmental outcomes by undertaking a Strategic Assessment for South East Queensland has also been welcomed by the industry.”
“The Property Council looks forward to continuing our strong working relationship with the State Government over the next parliamentary term.”
Despite the property council’s focus on South-east Queensland, the Queensland board is currently led by its Townsville-based Chairman, Laurence Lancini, Managing Director of Lancini Property and Developments.
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