The state government has shelved its controversial new land tax regime after admitting it did not have the cooperation of other states.
Queensland had planned to tax landlords based on the value of all their property Australia-wide, not just in the Sunshine State.
That would have seen investors with interstate property slugged thousands more dollars in land tax, a cost that would inevitably be passed on to renters.
However, it would have required other states to provide Queensland with key property data, something that other states, including New South Wales, had refused to do.
Premier Annastacia Palaszczuk had flagged raising the issue at Friday’s national cabinet meeting.
But following the meeting, she conceded the tax would have to be shelved.
“It actually came out of the treasurer’s meeting, so there were discussions held at that and it does rely on the goodwill of other states.
“Contrary to what the public report, Dom (Perrotet) and I actually get along quite well though we win state of origin.
“But in terms of it does require the goodwill of other states. If we can’t get that additional information, I will put that aside.”
The state opposition has described the decision as “an economic embarrassment” of “epic proportions.”
“The Opposition said from the second it was announced last year it was a Renters’ Tax that would drive up rents in the middle of a housing crisis. The Premier and Cameron Dick refused to listen,” Shadow Treasurer David Janetski said.
“The Treasurer said at the election he’d introduce no new taxes then introduced four.
“Despite this embarrassing back down the fact remains the confidence of renters and investors has been rocked and Queenslanders no longer trust the Palaszczuk Government.”
The Real Estate Institute Of Queensland has welcomed the decision, arguing the tax would have made the rental crisis even worse.
“Abandoning the contentious land tax regime will bring confidence back to the property investor market in a time of great uncertainty,” she said.
“To send shockwaves through the private housing investment market during a rental crisis was unprecedented and illogical.
“The land tax changes would have also potentially impacted commercial property investment and national employers with Queensland domiciled premises.”
