Well, we saw this coming! It looks like Premier Annastacia Palaszczuk has stepped up and decided it wasn't such a great idea to introduce the new land tax reforms after all.
With such a rental crisis already in QLD, the new reforms were only going to put further pressure for rental properties, as one in three investors were considering selling their investment properties after the original announcement of these changes coming into affect in June 2023.
The new QLD land tax changes were targeted at interstate investors. The proposal – which met a lot of resistance from the real estate sector and other states – would have seen interstate property holdings taken into account when determining whether an investor meets the threshold for land tax concessions.
Some of the most criticism came from NSW Premier Dominic Perrottet who earlier pledged to block attempts by Queensland to access relevant NSW data.
It Was Never Going To Work
From Premier Annastacia Palaszczuk's original announcement of the new land tax changes, I knew it simply wasn't going to last. If QLD can charge land tax based on your nationwide land holdings, then what's going to stop all the other states and territories do the same - it was going to be a bloodbath.
It's a shame that some investors panicked when they first heard about it and have already sold their QLD investment properties, especially when there's such a rental shortage there - rent prices are increasing weekly and considering the current rental yields on offer, it's definitely a market we continued to be bullish on with our clients.
With this latest announcement, we can expect to see an upward pressure on sale and rental prices across QLD, as we'll most likely investors returning in strong numbers to purchase investment properties here.
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I hope all of this info has been helpful and wish you all the best on your property journey. Please don't hesitate to get in touch if you have any questions.
Disclosure: The information contained in this blog is our personal opinion only and is not to be taken as financial advice, as we do not know your financial situation. Please speak with your accountant or any other licensed professional for specific advice based on your own personal circumstances. We will not be held liable for any losses.
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