Foreigners' property tax is Queensland Government's own goal

Foreigners' property tax is Queensland Government's own goal
Foreigners' property tax is Queensland Government's own goal

The body of evidence against the foreign investor tax increase expected in next week’s State Budget continues to grow, according to Queensland’s property industry. 

New research from the AEC Group, commissioned by the Property Council, has estimated that the decline in foreign investment in Queensland since the Government introduced an additional foreign investment tax in 2016, has equated to a decrease in Gross State Product of between $2.4 billion and $3.9 billion.  

The analysis indicates that the revenue expected to have been collected through the foreign investor tax equated to less than 1% of the overseas economic contribution Queensland lost between 2015-16 and 2016-17.

“It is clear that reduced foreign investor interest in Queensland has cost the state far more than the revenue raised through this foreign investor tax,” Property Council Queensland Executive Director, Chris Mountford, said.

“Regrettably we are still seeing the Government pursue short-sighted tax increases without adequately considering the long term consequences.”

“We certainly acknowledge that the State Government’s tax increase is not the only factor that has reduced the flow of foreign investment to Queensland. But it has played a big part, and it is a factor that is entirely in the control of the State Government.”

“The data shows the State Government has kicked a significant fiscal and economic ‘own goal’," Mountford said.

The State  Government intends to increase the stamp duty surcharge on foreign buyers of residential property from 3% to 7% of the purchase price from 1 July 2018.

 

Tags: 
Foreign Buyers Queensland

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