Treasurer Curtis Pitt has ruled out any new State taxes targeting foreign property investors in Queensland.
Mr Pitt made the pledge following news that the Victorian Government will introduce a range of new property taxes for foreign investors.
The changes announced in yesterday’s Victorian State Budget include a three per cent stamp duty surcharge for house transactions from July 1, along with a land tax surcharge of 0.5 per cent to be applied from 2016.
“In the lead up to the election we made it very clear that we wanted to provide certainty to businesses and investors, and that we would not be changing the existing revenue policy settings this term of government,” Mr Pitt said.
“Therefore, we’re ruling out any stamp duty surcharges for foreign investors who purchase a house in Queensland.
“We’re also ruling out any land tax surcharge for foreign investors in this state.”
Mr Pitt said Queensland was an attractive destination for foreign investment.
“We want to send out a very clear message that Queensland is open for business and that we welcome foreign property investment,” he said.
“Yesterday’s decision by the RBA to slash the official cash rate to a record low of two per cent is all the more reason for investors to be buying property in Queensland.”
Under the new Victorian regime, foreign investors purchasing a $600,000 home would face a surcharge of around $18,000.
Property Council of Australia Queensland Executive Director Chris Mountford has welcomed the Palaszczuk Government’s decision.
“The Property Council applauds the decisive action taken today by the Queensland Government in immediately ruling out new State taxes on foreign investors,” Mr Mountford said
“By immediately ruling out new taxes on investment and maintaining their commitment to no new or increased taxes, fees or charges, the Queensland Government will boost confidence and certainty for the property industry and investors in Queensland.
“This action will strengthen Queensland’s position on the global investment map. In particular it creates a compelling case to invest in Queensland over Victoria.
“Foreign investment is an important part of Queensland’s economy. Foreign investment in property boosts housing supply and in doing so creates jobs and provides Queenslanders with more affordable housing.”