New South Wales refuses to throw ball in Queensland’s controversial extraterritorial land tax


New South Wales Prime Minister Dominic Perrotet has denied working with Queensland authorities to help introduce a controversial extraterritorial land tax.

The Queensland Labor government’s proposal would calculate the amount of land tax an investor should pay based on the total assets owned nationwide, rather than what the investor owns within the state.

For example, if an individual owns 10 properties around Australia and purchases only one in Queensland, the government will charge land tax based on the combined assessed value of all properties.

The move drew sharp reactions from property groups who warned it could keep investors out of the state, especially as Queensland faces a severe rental crisis.

On September 26, Prime Minister Perotet said he would block attempts to access New South Wales (NSW) homeowner data from Queensland. This is the country’s most populous state.

“This is a state implemented tax that affects NSW residents,” he said in a comment obtained by AAP. “It is wrong and we are not going to comply with it.” So I’m not going to give you that information.”

The Prime Minister said the Liberal government will test the constitutional validity of the new land tax.

“This is a retroactive tax,” he said. “Some of those investors didn’t pay taxes at all because of how their investments were structured.”

A lot of foundation work remains to be done

One of the main challenges of the Queensland Government’s new scheme is to collectively identify properties that may be privately owned across the country.

The government currently relies on an “honesty” system in which individuals complete land ownership declarations, but nine more employees will be hired to implement the scheme.

Queensland’s Deputy Treasurer Leon Allen has previously admitted that there are no existing arrangements for data sharing and that the policy’s success “depends heavily” on what information is available. rice field.

Meanwhile, Queensland Treasurer Cameron Dick said the upcoming state elections were the motivation in response to Mr Perrott’s comments.

“Dominique Perrotet is making these statements today because he has six months to go before the election, and he is on a rampage in the polls, an election he is likely to lose,” he said in September. 27, speaking to reporters in Brisbane.

No solution to the housing crisis in sight

Treasurers framed the policy as a way to close tax loopholes and stop competition from local buyers. His government claims the move will generate an additional $20 million a year and affect only 10,000 landowners.

The government recently hosted a housing summit to solicit ideas for addressing the rental crisis. The current vacancy rate he has dropped to less than 1%. recently, restrictions lifted About renting out grandma’s apartment to non-relatives.

State opposition leader David Crisafri said the new land tax would discourage investors from looking to Queensland.

“Think of what this will do to the psyche of someone who wants to invest,” he told 2GB Radio on August 30.

It is estimated at around 36% of Queensland rents.

Independent Research Center economist Robert Carling said it took the Queensland government 70 years to close the so-called “loophole”.

“State land taxes have existed for over 100 years and have never considered anything other than the value of land within each state. It took me a long time to do it,” he wrote in The Epoch Times.

“Queensland’s land tax hike is imaginative.

Daniel Y. Teng

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Daniel Y. Teng is based in Sydney. His focus is on national politics such as federal politics, the COVID-19 response and Australia-China relations. Any tips? Please contact [email protected].