Anyone getting hard hit by absentee land taxes?

And this answers the original question. The absentee land taxes are making people reconsider owning property.

 

I have found some clients where it means land tax has almost doubled when the property value has hardly changed.

 

Exactly. It's shocking and a massive theft of the underlying capital base of an investment.

 

But why would they care? Not everyone buys property to speculate.

 

I argue it is a serious impact on the owners revenue. Property (ungeared) with a reasonable yield could now generate a loss. So much for an income producing investment ! Borrowing to pay the surcharge may well be deductible interest and not a Part IVA concern.

A SMSF is exempt ....Of limited benefit.

 

Agree. Mind blowing really that they have done this.

 

Is basically stealing your underlying value, such that over time even though nominal values may be increasing the property owner becomes "poorer" in real terms over time. It's nasty, disingenuous stuff, hitting both owner end users and "speculators" alike.

 

I must have missed the announcement that owners are guaranteed income and that rules never change.

 

There is a simple way to avoid the surcharge. And its not even tax advice. Its very simple and almost anyone can meet the test.

Become a citizen. That will show em. Downside is you must vote in elections and also pleby things that are now called surveys.

NZers are mostly protected as a Class 444 visa is generally issued.

The problems seem to arise when someone who was ordinarily resident (who isnt a citizen) departs. I guess they need to reconsider whether they want to pay the surcharge or sell.

There are other concerns too....Like Temp Residents who buy a house to live in. Residential real estate – temporary residents [GN2] – Foreign Investment Review Board
They can be caught by the surcharge while here AND are forced to sell their home when they depart.

 

This does not help in Qld.
I'm Australian - born, grew up in, and lived in Sydney all my life until going abroad a few years ago and would like to invest in properties for when I come back so that I don't have to live on the pension. Luckily for me I have not purchased in Qld, but for those Australian citizens in a similar situation, they are taking it up the backside from the Qld government. It's absolutely disgusting.

I understand charging more for people who are both not citizens and not residents, but doing this to citizens or residents is not right. It is nothing more than a way to get money from a minority group that can not vote them out.

 

You said it perfectly. And yes it's absolutely shameful and disgusting what the Labor party has done in Queensland.

 

Taxes arent meant to be fair. Just fair for some. Or look good in the media.

All the people who blamed foreign buyers for inflating prices who still cant afford a place must be celebrating how many have sold their properties to bring down values....Hang on. That never happended.

Land tax is always a wealth tax.

 

Further the irony is that foreign investment provides jobs for small and medium biz. Tradies, professional services etc. Money will go elsewhere if not welcomed. Also let's remember this tax in Qld also targets Ozzies who are overseas working. It's extremely un-Australian.

 

Read the rely below. For some states, Queensland for example, being a citizen will not help you.

 

No such announcement I am afraid. In theory under our political system the government could take all our assets at any time. That is why we need to be nimble, adaptable but also be willing to speak up when we see objectionable conduct taking place or being proposed by those in power.

 

Which by the way is one reason people are moving money into bitcoins (but that's a seperate discussion for a seperate thread...).

 

Im afraid screwing over people is party irrelevant. They just take turns.

 

If you "born, grew up in, and lived in Sydney all my life " then you have no right to how QLD sets it's laws. You can vote from overseas.

 

Do you get this emotional about it when the rules favour investors, which a lot of them do?

 

English, please.