Steve Greenwood |
Thursday, 10 September 2009 12:01 AM |
6 Comments
The thud of 2009 land tax bills hitting letterboxes throughout the State is now reverberating across the Queensland economy; property values are being depressed and jobs are being lost.
The short-sighted approach taken by the Queensland Government in increasing taxes in a falling market beggars belief.
Queensland is the only State that increased its land tax take by 30% in 2009. By comparison, New South Wales and Victoria have seen an increase of 3% and decrease of 2%, respectively.
The Property Council is well attuned to the seriousness the impact of the 2009 land tax bill is having, and has been flooded by calls from a variety of distressed property owners – some reporting increases of up to 43%.
The Property Council is in no doubt that the Government is fully aware of the implications of its actions; having worked hard throughout the first half of 2009 to explicitly detail the very significant impact that increases in land taxes would have on Queensland property owners and the jobs that the property industry provides.
We have made submissions on election priorities, on the Queensland budget, we have been in direct talks with the Treasurer, we have published a stream of articles through our e-news letter, through media releases and member alerts and through an advertisement in the Courier Mail.
We have made a submission to the Federal Government’s Henry Tax review – advocating for fundamental changes to the taxation system as currently the State Government is overly reliant on inefficient business taxes – including land tax – which jeopardises jobs and hold back the economy.
Despite all this, the Queensland Government announced record land tax increases.
The Property Council has had some wins on the land tax issues: we have seen the introduction of the land tax pass-through (for new leases as of 1 July 2009), which will do much to benefit Queensland land owners.
Other Property Council land tax lobbying wins in the Queensland State Budget 2009-10 include:
- The 50% cap on annual increase in land values (for the purpose of calculating land tax liabilities) continues to apply in 2009-10
- Introduction of quarterly billing of land tax liabilities in 2010-11
- Extended payment period for land tax assessments in 2009-10 (from 30 to 90 days) as an interim measure
However, the combination of the failure by the Government not to revalue properties in late 2008, the three year averaging process and the impact of the $93 million dollar surcharge announced in December 2008, has pushed the total State land tax bill over the $1 billion dollar mark for the first time ever.
This issue is simply not about the big end of town whinging about increasing taxes. The issue is about jobs – pure and simple. The property industry accepts that it has a role in the Queensland economy and accepts that it should pay its fair share of taxes. But footing 34% of the State’s tax bill is by no means fair.
The Property Council has renewed its call for 2009 revaluations in South East Queensland and all regional growth areas – which should provide a degree of much needed relief in 2010.
What can you do in the meantime? You can make sure that the Government knows your views on the issue by writing to your local member.
The Property Council will continue its quest for fair property taxes on behalf of its membership.
Please feel free to make your comment on this issue below – make sure your voice is heard.
Steve Greenwood |
Thursday, 10 September 2009 12:01 AM |
6 Comments
