Nothing sexy about this sticky tax web

Whew! All that is of course on top of council rates and separate water charges.

I think a majority of properties in our local government area would now be caught in the potential tax net, with numerous owners having to declare their status or pay up. Some house sales here in recent years have exceeded $30 million, so the land value would be well up in the list and many would include absentee owners.

The Real Estate Institute of Queensland (REIQ) is just one organisation aware of the widening web, issuing a media release last year which included the following:

Astonishing new data from the ABS has laid bare the Queensland Government’s bumper bounty from property tax revenue over FY23, all while the State endures a housing crisis.

The data, which excludes coal royalties, shows stamp duty now accounts for 25 percent of the tax base for the State Government compared to 20 percent ten years ago.

Additionally, property taxes (stamp duty and land tax) have risen by 133 percent (more than doubled) over the past ten years, equating to an additional $4.2 billion per year.

REIQ CEO Antonia Mercorella said given the steep upshoot in property values in the Sunshine State, it was time to reset reasonable parameters of property tax.

“Over the past five years, Queensland has recorded the highest growth in property taxes of any state,” Ms Mercorella said.

“Even with Victoria increasing taxes on property such as windfall gains tax in that period, Queensland is still taking the cake for escalating tax take.

“Despite record revenue and announcements relating to housing, it’s insulting and ironic that very little is being reinvested back into building social housing – with only 56 completed last year, the lowest on record and the lowest of any state.”

Ms Mercorella said Queensland’s property taxes may target home buyers and property investors, but make no mistake, they have a flow on impact to everyone and the economy…

“While ongoing and escalating land tax costs are inevitably partially passed on to renters in order to ensure investments still stack up and remain sustainable.

“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.

“The REIQ continues to call for the indexation of land tax – the threshold has been set at $600,000 since 2007, so it’s well overdue to readjust the value at which land tax applies…”

All other states have similar land taxes, some (such as Victoria) may be worse, some better, with only the Northern Territory being exempt.

Meanwhile I have filled out and submitted the required form online declaring my main residence status, so hopefully I will enjoy the same exemption as my wife. But the reason for the contrasting treatment remains a mystery which only someone with the bureaucratic skill of Yes Minister’s Sir Humphrey Appleby could explain. But I won’t be ticking any sex change form any time soon.