This article is from the Australian Property Journal archive
THE Queensland government has ruled out introducing new taxes on foreign buyers of residential real estate.
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There were concerns that other state governments could follow in the footsteps of the Victorian government, which last week introduce two new taxes on non-residents.
The Andrews government will impose an additional 3% stamp duty fee and 0.5% absentee surcharge on foreign buyers, which is expected to raise $279.7 million and $53.5 million over four years.
QLD Treasurer Curtis Pitt said he hopes his announcement would lure foreign investors away from Victoria, to focus on the sunshine state.
“It will be a really good boost for Queensland.
“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.
“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.
“We want to send out a very clear message that Queensland is open for business and that we welcome foreign property investment,” Pitt said.
The announcement has been welcomed by the Real Estate Institute of Queensland.
REIQ chairman Rob Honeycombe said the decision would give certainty to investors and help the recovering property sector find its way to solid ground.
“In 2014 Queensland recorded $51 billion worth of residential real estate transactions, the highest level since 2010, but still well below the peak of $73 billion in 2007, illustrating that the market is still a long way from a full recovery.
“Additionally taxes on foreign investors – who are already being taxed at a Federal level – could slow or stymie the continued strengthening of the market.
“The Queensland housing market is not in the same position as the Melbourne and Sydney markets and we need to welcome investment in housing, especially new housing,” Honeycombe said.
Australian Property Journal
