the QLD land tax

Since Perrot it not cooperating with the valuations and QLD have to go by public data, you would guess places like Corelogic, I guess the bosses of Corelogic can benefit if he/she dials down their own non-QLD property prices in their database.

This just stop me investing in QLD, the world is a big place, move on, and I will not go to QLD for anything too.

 

The obligation to maintain the valuation sits with each owner so NSW co-operation isnt as required as may be believed. Under the new law the OSR will use what the owner reports and updates on the OSR website and OSR can use a valuation of their choosing if they dont or if they dont maintain this information or it seems incorrect. The QLD Commissioner can implement another valuation basis if a taxpayer does not co-operate for example and this then forces the taxpayer to advise the Commissioner of a lesser value if it may save them being overtaxed.

The access to state valuation information is contemplated in s80A(1)(a) as indicated in italics but that law allows other alternatives.
View - Queensland Legislation - Queensland Government

80ADecision about relevant interstate value of interstate land

(1)The commissioner may decide that any of the following amounts is the relevant interstate value of interstate land owned by a taxpayer when the taxpayer’s liability for land tax arose for a financial year—
(a)an amount notified to the commissioner under section 78A or worked out using information notified to the commissioner under that section;
(b)an amount determined by the commissioner on the information available when the commissioner assesses the taxpayer’s liability for land tax for the financial year;
(c)an amount determined by the commissioner on the information available at a time after the commissioner assesses the taxpayer’s liability for land tax for the financial year.

TIP - All land owners should retain all land valuation notices as it may assist to support and prove a value

(2)Subsection (3) applies if—
(a)the commissioner decides an amount under subsection (1); and
(b)after deciding the amount, the commissioner is notified by the taxpayer that a different amount (the updated amount), lower than the amount decided by the commissioner, is the relevant interstate value of the land when the taxpayer’s liability for land tax arose for the financial year; and
(c)the commissioner is satisfied it would be appropriate in the circumstances to decide that the updated amount is the relevant interstate value when the taxpayer’s liability arose.

(3)The commissioner must make a decision under subsection (1) that the updated amount is the relevant interstate value of the land when the taxpayer’s liability for land tax arose for the financial year.

 

thats not really how it works, there are 3 types of rental markets, 1) reducing population, 2)stable population, 3) growing population.

at the limit, in a reducing population (ie Australian mining town in a bust) once all the renters bought a house, there are still houses available for rent, so prices drop precipitously.

at the limit in a stable market (ie short term outlook) that is mostly correct (except that it can create new renters (ie moving out share house etc)

at the limit in a growing population (Australia increased 8.6% between last 2 census) once all rental homes are sold, there is still a population of renters, looking at being forced into 'homelessness'

 

There are also other factors such as micro shifts in population eg Victoria to QLD or even between surburbs within a city etc Shortages of supply can cause rent spikes. If we look at that on the smallest scale within a rental agency they may have one vacant listing and twenty people seeking a rental. Up goes rent in a blind auction/...Those renters will seek other agents who also see higher demand. . Then ageing may see deceased estates shift from owner occupiers to renters or another OO. Construction also changes supply and that can shift between new construct and existing stock and so on but within that group it can lead to abundant apartmnets yet a supply shortage of free standing homes.

Throw in limited affordable rents and thats a whole microeconomic factor with NRAS winding back. States can only fill so much of that public housing demand capacity with a (very) slow lead time.

 

As a former resident of a WA mining town, the idea that rental can be so tight as that new residents must stay in the caravan park first until a house becomes available, with a neighboring township (different commodity) can have a bust, that council confiscates/sell properties for the price of 7 years unpaid rates.

Its extreme, but it can and did exist in Australia.

I suppose from a distance, the averages balance out

 

Not selling any, my Capital Gains tax would be colossal in comparison.
Plus, rules keep changing all the time and as I am a long-term investor looking at Capital Growth for now the equation still holds in favour of holding forever!
Interesting thing is that it will be larger QLD.... so, state tax, yet this will be an expense for ATO so federal tax, how will this balance out for state vs federal government?
I still don't know what this tax is to achieve, will the actual funds be directed to cut red tape to build more properties basically how to solve the actual supply and demand issues at present?
I just think it's just lazy tax.
Queensland’s rental supply plummets as investors exit | YIP

 

I think Qld created this policy for looks, without giving it much of a financial thought. Kinda like shaking the can to see what money they get, and only later start to add it to the budget.

 

IDK why they didnt just seek to limit multiple thresholds for trusts...or just make the threshold a grouped one etc. Or remove it.

If they adopted the NSW / Vic model where trusts get $0 threshold (Vic gets a modest threshold then a scale ramped up) then they would have argued it was to address avoidance and it would have been a easier defence. What they have said is we will tax QLD property more aggressively if you also own in other states. It cant be defended as its a lie to suggest there was avoidance. I will argue QLD Treasury started with a view that they found a loophole to tax qld property at a higher rate. I would estimate they only modelled how much extra tax they could get and didnt consider other issues. If they did they would have released it.

 

Don't give them ideas!

 

Is 36% of Queensland’s properties owned being rental properties high? (Just over 1/3) It also mentioned in the article linked above that 2/3 of properties purchased are potentially owner occupied. I wonder how it compares to other states. There is some info here at the start of the segment regarding this new tax. September 2022 - The Property Couch

 

Looks like this Tax law has been scrapped.
Courier mail tweeted.

 

yes - but what stops them from coming up with something else later?
like rent cap, extra transfer duties for interstate investors etc.

They need money to fund their Olympics, and taxing non-voters is the best way.
All these renewables, Olympics, and infrastructure needs money.

 

dont give them any ideas.

 

So who sold in anticipation of the land tax changes?

 

I do sympathise with the many people who may have sold as a knee jerk reaction to this tax. That said, repealing the legislation was always on the cards - (as was the other states replicating it as well). As a property investor I am grateful to both the property lobby groups and REI's that lobbied on behalf of property investors as well as the NSW State Government which called the tax out for what it was - a blatant money grab. Great to see common sense prevail. Just like Vendor stamp duty in NSW, these taxes will generally hinder the population that they are purportedly intended to benefit.

 

It ain't over yet... at some point whether at a federal or state level they will need to sort out housing affordability. Lets....see what that brings....

 

You are more than likely right - hopefully however, this is an acknowledgement that the collective force of Australian property investors, which supply over 90% of Australia's rental accommodation, will not tolerate continuing to be the whipping boys of failed government policy through the implementation of yet another speculative and ineffective property tax.

 

That maybe the case now.... but increasingly a larger portion is renting...as this increases expect changes as this will be a growing voter base.

Even the negative gearing as a sacred cow...might have changes....

 

LOL.....hahahaha

I knew this was never going to pass. I applaud Dominic Perrottet by also coming out and publically saying NSW wont be sharing any information with QLD if it did happen. Good on him for doing that and also all the Real estate bodies that put pressure on the QLD government.

What an idiotic tax and idea. Attempt at a money grab that's all it was.

I hope no one offloaded their properties purely based on this. That would hurt.

I said it from the start that this tax would never get implemented. It was never going to work.

 

REIQ CEO Antonia Mercorella discusses the scrapping of the new land tax regime + new and updated Realworks forms for the beginning of the new tenancy... | By The REIQ | Facebook