Queensland Treasurer Cameron Dick has sparked controversy with his proposal for a comprehensive reform of housing taxes, a move timed just ahead of the state election. The announcement, made Monday night, has stirred concerns within the industry, with the Real Estate Institute of Queensland (REIQ) cautioning that it could unsettle property investors.
Mr. Dick, who also serves as the Deputy Premier and Minister for Trade and Investment, outlined the review’s primary objective as enhancing the long-term sustainability of housing supply in Queensland.
“Queensland Treasury is continually assessing our state’s tax framework to ensure our competitiveness on both national and global stages. Given the current constraints in the housing market, the timing is apt to conduct a thorough review of how state taxes and charges impact housing supply and the broader property sector,” stated Mr. Dick.
He emphasized the need for the review to carefully consider any unintended consequences that altering tax settings might have on property prices, as well as its implications for the state’s fiscal stability.
The Treasurer highlighted ongoing challenges in ensuring housing availability for future Queensland governments. The review is slated to commence post this year’s state election, with outcomes intended to inform the 2024-25 Queensland Budget.
REIQ CEO Antonia Mercorella acknowledged the review’s focus on boosting housing supply but voiced concerns over the ambiguity of the announcement.
“While it’s promising that increasing housing supply is the goal of this tax review, vague statements like these can undermine investor confidence and potentially destabilize the property market,” warned Ms. Mercorella.
She also highlighted potential repercussions on the commercial property sector and its consequential impact on employment opportunities across Queensland.
The proposed overhaul of housing taxes marks a significant policy shift ahead of Queensland’s electoral landscape, prompting a debate over its potential ramifications on the property market and broader economic stability.
