Queensland Government Scraps Controversial Interstate Land Tax

As of the 30th June 2022, new Land Tax rules were set to come into effect which would have taken into account interstate property ownership when calculating land tax payable.

However, given backlash from the industry and the refusal of the other states to comply with the regime the Queensland government has had to ditch the new tax which would have raised $20 million for them in revenue each year.

Whilst academics argued that the tax would not have any impact on rising rental rates and cost of accommodation, logically any increase in expense would have to be then at the very least in part have been passed onto the tenants, in most cases working families, so the scrapping of this new land tax is an outcome which can be considered a win for everyday Queenslanders, who are already struggling to cope with the rising cost of living, with petrol, groceries and electricity prices rising to unprecedent levels.

It comes as a surprise, the prime minister, Anthony Albanese has discontinued the fuel supplement which means that petrol will now be well over the $2 mark for months to come. Also, Australians are waiting for Mr Albanese to deliver on his election promise to provide more affordable electricity. The Queensland government have provided a $175 cost of living rebate on electricity bills for all Queenslanders which from experience will do little to anything given the soaring costs, but at least it’s something.

It seems the dissident attack on the property owners as an excuse for the non-provision of affordable housing, was just used as another excuse for a government cash grab which would not have been put towards fixing this problem in any event, according to industry professionals.

For businesses there has already been a wage increase for staff who are struggling with the soaring interest rates on their mortgages. Yet the Chairman of the Reserve Bank asks small business owners not to put their prices up because it will only lead to further inflation.

People, businesses, families are all being asked to forget that Australia is recovering from a post Covid economy. But the show must go on and work needs to continue as if nothing happened.

The unavailability of building supplies has led to delays and other issues in the property sector and more than ever are struggling with accommodation issues.

In conclusion, the last thing anybody needed was a new tax in the current climate, however, people were warned that after the election there would be more taxes and this is exactly what has happened. The small win for the scrapping of this tax needs to be considered in light of what might be expected to come in terms of unforeseen changes.

Michael Kilmartin is a property lawyer at Kilmartin Legal