Queensland Treasury rejects landlord tax break proposal, saying it provides critical revenue

queensland treasury rejects landlord tax break proposal, saying it provides critical revenue

Treasury analysis shows taxpayers would need to fork out hundreds of millions of dollars to give landlords their desired tax breaks.  (ABC News: Dea Clark)

Taxpayers would need to pay $1 billion each year to give landlords the tax breaks they desire, Queensland government modelling shows.

The Treasury analysis comes in response to lobbying from the Property Owners Association of Queensland and the Real Estate Institute of Queensland (REIQ) to reduce land tax on landlords.

The Property Owners Association wants the state government to raise the tax-free threshold on land values by 200 per cent, from $600,000 to $1.8 million.

Treasury modelling shows the proposal would cost the budget $1 billion a year over the next four years.

The REIQ wants land tax thresholds indexed to keep up with inflation since the threshold has not changed since 2008.

A Treasury spokesperson said the proposal would cost taxpayers hundreds of millions of dollars each year, rising to $400 million in the 2027/28 financial year alone.

"Land tax is a critically important part of Queensland's revenue base," the spokesperson said.

"It pays for things like new roads, hospitals and schools, and it pays the wages of nurses, teachers and police officers.

"Even so, Queensland has one of the most generous land tax thresholds in the country."

Treasury analysis shows 0.9 per cent of Queensland's population pays land tax, disproportionately affecting people who own multiple investment properties.

Land tax does not apply to homeowners who live in their house as their principal place of residence.

Pushing for change

Property Owners Association vice-president Alexandra Dapontes said the government was responsible for pushing up the cost of rents through their land taxes.

"They obviously don't care about homeless people because they are obviously more worried about their money and figures," Ms Dapontes said.

"I think they should focus on building a lot more social housing for people because people are waiting up to five years to get a social house from the government."

The Property Owners Association will be petitioning the state government to raise the land tax exemption threshold until September.

REIQ chief executive Antonia Mercorella said it was time to reform property tax laws, given the steep rise in property values.

She cited Australian Bureau of Statistics data which shows property taxes have risen by 133 per cent over the past 10 years off the back of soaring house prices.

"It's clear our state's antiquated property tax system is no longer fit for purpose, and this unhealthy addiction to new highs of property revenue must be tapered and kept in check," Ms Mercorella said.

"At all points in property transactions, some level of government, whether it be state or federal, is also going along for the ride and reaping the benefits too – they all stick their fingers in the property pie, and concerningly that makes for a much less appealing meal."

OTHER NEWS

14 minutes ago

The Rest of Xbox Game Pass' 2024 Line-Up Is Betting Big on One Genre

15 minutes ago

Meghan Markle moves on from jam to dog biscuits as she teases latest American Riviera Orchard product

15 minutes ago

Jeremy Clarkson addresses shocking footage of police mowing down baby cow

15 minutes ago

Swiss swap training base after new turf dies

15 minutes ago

UK weather: Exact date maps turn dark red as 26C 'heatwave' sweeps across Britain

15 minutes ago

Scrapping two-child benefit cap would cost £3.4bn, says IFS

15 minutes ago

Yankees prospects: Yankees best Bombers in intra-org clash

15 minutes ago

Putin lays out ceasefire demands to Ukraine

15 minutes ago

Who won Tony Awards for 2024: full list of winners and nominees

15 minutes ago

Illawarra community ‘divided’ over proposed wind farm

18 minutes ago

Democrats launch summer spending blitz highlighting state legislative races

20 minutes ago

‘House Of David’ Biblical Drama At Amazon Adds Iraqi-American Actor Alexander Uloom

20 minutes ago

Are you handing over your personal data? Forgetting this action before selling a car could see you hand over your private details to strangers

21 minutes ago

Princess Kate wears pearl earrings for moving reason during her cancer recovery

21 minutes ago

Toyah Willcox: ‘I had tea with Princess Margaret – she wanted to see what a punk rocker looked like’

21 minutes ago

Countryfile viewers brand BBC 'sadistic' as they slam upsetting scenes on family show

21 minutes ago

UK E.coli outbreak 'much worse' in kids as contaminated salad sold in half term – new warning issued

21 minutes ago

In southwestern France, Ukrainian pilots are learning to fly fighter jets

21 minutes ago

Blondie icon Debbie Harry sets sights on working with Johnny Depp

21 minutes ago

Why Attack Napier? – On This Day in 1974

21 minutes ago

Olly Murs and Mark Wright tease Euros song as fans say same thing

21 minutes ago

Jack Draper wins first ATP title with final victory over Matteo Berrettini in Stuttgart

21 minutes ago

Is Emmerdale and Coronation Street on tonight? Full ITV soap schedule for this week

24 minutes ago

Chicago weather: Near-record warmth with temperatures feeling like 100; air quality alert issued

25 minutes ago

Video: England's humble hero: Jude Bellingham goes straight to celebrate Three Lions win with his mother, heartthrob father and lookalike footballer brother

25 minutes ago

Video: 'Simply not good!': European media are left unimpressed by Euro favourites England's hard-fought 1-0 win over Serbia, as L'Equipe give one defender 3/10 and Marca say 'Bellingham and little else'!

26 minutes ago

Dallas resident Nick Finc heading to his second Olympics in swimming

26 minutes ago

Indian national charged with plotting the murder for hire of a Sikh activist is extradited to the US

26 minutes ago

Starfield's Shattered Space Does a Complete 180 on House Va'ruun

26 minutes ago

Mum left in stitches after spotting stranger in garden at 4am on Ring doorbell

26 minutes ago

Will Head Continue To Cause Mayhem In Powerplay - T20 World Cup 2024

26 minutes ago

15 killed and dozens injured as goods train collides with passenger express in India

26 minutes ago

1 FTSE lithium stock I think could be ready to rocket

26 minutes ago

If I’d put £5k in a FTSE 100 tracker fund 5 years ago, here’s what I’d have now

26 minutes ago

Makhubele, Zuma slam GNU as sell-out deal

29 minutes ago

Catch Up and Read driven by excellence for teachers, students

33 minutes ago

Dress to impress! 10 Ascot-ready dresses for the perfect race day look - shop tailored, wrap and body sculpting dresses from just £49

33 minutes ago

Shoppers say this neck tightening cream makes their 'lines less visible' and it's finally back in stock after selling out: 'I saw a big improvement'

33 minutes ago

Simple item drivers are urged to add to cars to boost fuel economy

33 minutes ago

Transfer news LIVE! Arsenal in Xavi Simons battle; Dovbyk latest; Chelsea £51m deal; Man Utd in De Ligt talks