The Property Council of Australia today expressed its strong concern about the impact of the State Government’s land tax bills now being received by property owners throughout Queensland.
Property Council Queensland Executive Director, Steve Greenwood, says the Property Council office has been flooded with calls from a variety of distressed property owners - some reporting increases in their land tax bills of up to 43%.
“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 a decrease of 2%, respectively”, Mr Greenwood said.
“The rise in land tax bills in a market where property prices have taken a nose dive is a direct result of the Queensland Government not revaluing properties in late 2008, the three-year averaging process and the impact of the $93 million surcharge announced in December 2008.”
“The Property Council is in no doubt that the Government is fully aware of the implications of its actions; we have 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.”
“Despite all this, the Queensland Government announced record land tax increases.”
“This issue is simply not about the big end of town whinging about increasing taxes.”
“The issueis 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 percent of the State.s tax bill is by no means fair.”
“While we have had some hard-fought wins on land tax issues, including the introduction of the land tax pass-through and the introduction of quarterly payments, the Property Council renews its call for 2009 revaluations in South East Queensland and all regional growth areas to provide a degree of much-needed relief in 2010.”
Traditionally, valuations are conducted towards the end of each year, with land tax imposed on owners as at midnight on June 30 of the next calendar year. As revaluations were not undertaken in 2008, the 2009 land tax bills are artificially inflated as they are based on valuations conducted in 2007 - at the height of the property boom.
Steve Greenwood, Executive Director - 07 3225 3000 or 0488 721 156