Yesterday the re-elected Queensland State Government issued its Mid Year Fiscal and Economic Review 2017/18 which confirmed its intention to increase the highest band of land tax by 0.5% for aggregated holdings above $10 million from 1 July 2018. If implemented, this will have an impact on the value of commercial, retail, industrial and tourism property portfolios.
In fact, analysis by the Property Council of Australia (PCA) reveals that the land tax increase would wipe between $1 billion and $1.25 billion off the value of commercial property values in Queensland. It is also intended that Queensland's lower additional foreign acquirer duty will be increased from 3% to 7% from 1 July 2018 in line with other jurisdictions. The PCA is asking the Government to undertake a full review of the property tax framework in the new year prior to moving to implement these proposed increases.
These revenue measures announced by the Government are part of a package for the period 2017-18 to 2020-21, in which taxation estimates have been increased by $521 million, most of which is due to revenue measures announced by the Government (through a combination of expenditure reprioritisations and revenue measures, including those above) to be implemented in consultation with key stakeholders.
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