The Commission of Audit’s Interim Report released by the State Government clearly demonstrates the need for a complete overhaul of Queensland’s taxation system, according to the Property Council of Australia.
The property industry has been highlighting the inefficiency and inequity of Queensland’s tax system for years and the Commission of Audit Interim Report only reinforces the critical need for change, Queensland Executive Director of the Property Council of Australia Kathy Mac Dermott says.
“The dire state of Queensland’s finances shines the spotlight on how inefficient our State taxation system has become.”
“The property industry has been carrying an unfair proportion of the State’s tax burden for too long, contributing $3.8 billion or 29.2 per cent of State tax revenue.”
“Property already contributes 12 cents in tax for every dollar of GSP generated, compared to an average of 5 cents across all industries.”
“We were slugged by the previous government with a ‘temporary’ land tax surcharge that will soon be four years old and we cannot afford to continue have our state’s investment competitiveness eroded. ”
“The only way the Queensland Government can strengthen its fiscal position in the long-term is by increasing the flow of investment into the state.”
”You can’t increase revenue by taxing investment that doesn’t exist and won’t flow to Queensland while we remain uncompetitive. Other states – most recently South Australia and NSW – continue to incentivise investment to their states.”
“Increasing property taxes is akin to building an investment roadblock at the New South Wales border. It would be the wrong decision.”
“The LNP recognised this when they declared property and construction one of the four pillars of the Queensland economy.”
“We need to change course and focus on developing a new and more efficient system that encourages investment to the state.”
“It is time to stop tinkering with rates and thresholds and commit to a whole-of-state tax review that delivers a strategic state tax modernisation program.”
“This will require Queensland to take the lead nationally, so that sensible national options like increasing the GST rate are on the table.”
“We are keen to work with the State Government to deliver this critical reform.”