Queensland to slug foreigners with absentee land tax surcharge
Queensland's state government has decided to tax foreign landowners with a 1.5 percent absentee land tax surcharge on land worth more than $350,000, following NSW and Victoria's moves to levy more taxes on foreigners.
The absentee land tax surcharge comes on top of the 3 percent transfer duty surcharge, which was introduced in 2016.
The new levy is expected to generate revenue of $20 million a year from 2017-18.
Queensland Treasurer Curtis Pitt was quoted as saying by The Courier Mail that the “surcharge ensures that absentee owners of land are making a fair contribution and it has no direct impact on Queenslanders.”
Earlier this month, New South Wales announced it would double its foreign investors stamp duty surcharge to 8 percent as part of premier Gladys Berejiklian’s moves to address housing affordability ahead of the budget.
And Victoria announced it would impose a tax on homeowners who leave their properties vacant in a bid to make housing more affordable in and around Melbourne
Victoria's Vacant Residential Property Tax will be levied at 1 percent, multiplied by the capital improved value of the taxable property.
In May's Federal Budget, the Australian government also announced a new tax on any vacant properties owned by foreigners in a bid to improve housing affordability.
The new charge is expected to bring in $16.3 million over the forward estimates being monitored by the Australian Tax Office.
