The Property Council of Queensland has raised concerns that commercial rates are being increased above inflation, following the announcement of 3.5% increases in this year’s Budget.
“With statutory valuations increasing dramatically across Brisbane, and the State Government’s new land tax increases, we’re going to see a lot of pressure on rents for local businesses,” Property Council executive Chris Montford said
“Continued increases in commercial rates are only going to add to this pressure and make it more difficult to do business in Brisbane,” he said.
The Queensland Government has announced higher taxes on residential property owners in its State Budget, as has the Brisbane City Council.
It’s the ninth time either new taxes have been created or taxes that already existed have been increased in the last three years.
Homeowners will be hit with the same increase delivered by the council last year, an average 2.5 percent rate rise for owner-occupied residential properties.
TOP 10 RATE RISE INCREASES
Wakerley up 5.8% to $1588.27
Seven Hills up 5.8% to $2092.84
Robertson up 5.4% to $2241.80
Mansfield up 5.4% to $1724.22
Kenmore up 5.4% to $1579.82
Auchenflower up 5.4% to $1820.47
Chapel Hill up 5.2% to $1724.59
Upper Mount Gravatt up 5% to $1546.42
Wishart up 4.9% to $1672.46
Paddington up 4.7% to $2273.16
Land tax has increased for all property holdings over $5m in Queensland, with some offshore investors potentially seeing a near doubling of their overall land tax bill.
Property Council Queensland executive director Chris Mountford says the Queensland Government’s commitment to attracting investment in industries like manufacturing and tourism ring hollow following today’s latest cash grab.
“Today we have seen extraordinary increases in land tax, totalling an extra $778 million over the next four years,” Mountford said.
The land tax rates for companies and trusts will increase 0.25 percent which is forecast to raise $238 million.
Land tax rates will not change for individuals.
“It is simply not accurate to suggest these taxes won’t be paid by Queenslanders, or won’t affect job creating investment in the state,” Mountford added.
“Almost all of the properties that will be impacted by this tax hike are home to businesses employing thousands of Queenslanders in industries like manufacturing, tourism, logistics and trade.
“The reality is that land tax is paid – either directly or indirectly – by the business that operates on the land.
The absentee land tax surcharge will increase from 1.5 percent to two percent and will be widened to include foreign companies and trusts, but will not include Australian citizens.
The increase is expected to raise $540 million.
Mountford said when it comes to tax competitiveness, land tax thresholds in Queensland have not been reviewed for a decade.
Queensland’s land tax rates are far higher than in New South Wales and Victoria.
“Queensland has a clear structural problem with its budget, and until it is fixed, the tax hits will keep coming and we will continue to see an underinvestment in the social and economic infrastructure our state needs.”
“When it comes to foreign investment, the Queensland Premier and Ministers are happy to fly around the world spruiking investment in the Sunshine State, but what they seem to forget is that an investment needs to stack up.
“It’s the bottom line on the investor’s spreadsheet that determines whether they invest in Queensland, or anywhere else in the world. This tax slug makes job-generating investment from offshore players in key sectors like tourism less likely in Queensland.
“Sadly, this is just the latest in a long line of tax hits for people who have chosen to invest in Queensland.
The biggest rate rise comes from Seven Hills and Wakerley where residents will see their annual rates increase 5.8%.
Rates in the pricey Kangaroo Point however are expected to drop, saving the average ratepayer $86 a year.
Residents in Seven Hills will face an increase on average by 5.8 percent – or $115.23.
Robertson, Mansfield, Kenmore and Auchenuflower ratepayers will have a 5.4 percent increase to their rates bill followed by Chapel Hill, Upper Mount Gravatt, Wishart and Paddington, where rates bills will increase by at least 4.7 percent.