While new infrastructure investment has been warmly welcomed, there are concerns about where the money is coming from to pay for it.
Property taxes have upsurged in the last year to help top up state reserves and two new property taxes were introduced in this month’s budget, targeting foreign investors of assets in Queensland. Land tax thresholds have not been reviewed for a decade, and currently Queensland’s rates are far higher than both Victoria and New South Wales.
These new taxes mean foreign landowners will be hit with an additional 0.5% in land tax for properties over $10 million. There will also be an upsurge in foreign transfer duties from 3% to 7%. Both taxes are expected to raise more than $326 million in the next four years.
An overview of the new taxes for Queenslanders include:
- Interstate online betting companies will face a 15% wagering tax, which will be passed on to Queensland gamblers
- Taxes for overseas property buyers will rise from 3% to 7%
- Duty on cars worth more than $100,000 will rise 2%
- A 0.5% land tax increase on properties worth more than $10 million
- Car registration will rise 3.5% from July 1
Concessions in the 2018-19 Budget will deliver $5.6 billion in savings on electricity, water, transport, education and housing. With over $1.1 billion delivered for a range of energy rebates and concessions, and a half-price public transport concession for 19,000 Department of Veterans’ Affairs white card holders, the concessions will make living slightly easier for some Queenslanders.
The $20,000 first home buyers grant, has been cut back to $15,000 which will surely slow down first home buyers from getting into the market at a time when it could be dangerous for the construction industry. Increased land taxes will be passed down to buyers, and when combined with the grant reductions, it could truly slow the market into a slump.