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Queensland taxation changes stifling property industry confidence: Property Council

Queensland taxation - Image: Dark clouds over Queensland capital, Brisbane as Property Council express concerns about investor confidence dropping from proposed land and foreign investor taxation.

Investor confidence in Queensland taxation debate

The ANZ Property Council of Australia’s latest confidence survey has recorded a drop of two index points for Queensland in the March 2018 quarter since the State election due to unfavourable taxation changes.

In the peak industry bodies press release, the Property Council announced that “The confidence levels of Queensland’s property industry have dropped for the first time in five quarters, with the State Government’s proposed new tax hikes reversing recent growth.”

“Queensland now has the lowest confidence levels of all Australian jurisdictions”, the Property Council commented.

Property Council Queensland Executive Director, Chris Mountford, said that the results confirm industry concern about the Government’s proposed property tax hikes.

“Under current circumstances, Queensland’s property industry simply isn’t as confident as the other states, this means they are less willing to invest and create new jobs,” Mr Mountford said.

“At a time when we need to do more to catch up with other markets, increasing taxes on property is a big economic risk.”

Taxation - Economic index matrix
Image: Property Council of Australia

The re-elected Labor Government has 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, more than doubling from 3 per cent to 7 per cent.

“The impact of these proposed tax increases can already be seen in the figures. Forward work schedules, staffing level expectations, and Queensland’s economic growth predictions are all down,” Mr Mountford said.

“Taxes on business and investment are ultimately taxes that will be borne by Queenslanders,”

“These are not Robin Hood taxes, they are simply another cost for Queensland businesses to contend with in a period of considerable cost pressure.”

For the last two years Queensland has been consistently behind all the major states in terms of overall confidence, only remaining in front of Western Australia – where the end of the resources boom had created significant economic challenges.

“In contrast to Queensland’s relatively flat confidence levels, WA has surged back from an economic downturn.”

“With Queensland now the least confident market in the country, the challenge for the State Government in 2018 will be to reverse this equation.”

“Abandoning the proposed tax increases would send a strong message to the industry that they can have confidence to invest in Queensland.”

Taxation- Industry Confidence Index
Image: Property Council of Australia

To view select ANZ/Property Council Survey historical data series in the Property Council’s Data Room, click here.

To find out more about the ANZ/Property Council Survey and our Supporting Sponsor RCP, click here.

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Aaron M, Editior
Aaron is the founder and editor of TREN eMagazine with 15 years experience in the real estate industry investing and helping investors seek value, leverage value and capitalise on value, developing professional and technical skills and capabilities that have enabled his success in business from startups, adoption, asset growth, management and community leadership projects. Aaron also loves travelling, sports, his partner Jodie and helping people discover their "why" and find their few "what's" in life that realise the "wows. The " www" in www.townsvillerealestatenews.com.au is one of his why, what and wow's that strive to add valuable content and analysis for readers to participate and win.
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