{"id":3441,"date":"2023-04-17T10:00:00","date_gmt":"2023-04-17T00:00:00","guid":{"rendered":"https:\/\/theonsitemanager.com.au\/news\/?p=3441"},"modified":"2023-05-02T13:04:42","modified_gmt":"2023-05-02T03:04:42","slug":"time-to-wind-back-foreign-investor-surcharge-says-reiq","status":"publish","type":"post","link":"https:\/\/theonsitemanager.com.au\/news\/time-to-wind-back-foreign-investor-surcharge-says-reiq\/","title":{"rendered":"Time To Wind Back Foreign Investor Surcharge, Says REIQ"},"content":{"rendered":"\n

The Real Estate Institute of Queensland (REIQ) is calling on the Queensland Government to rescind foreign investor surcharges, in light of the state\u2019s housing crisis.<\/strong><\/p>\n\n\n\n

The REIQ has long-opposed both the seven per cent surcharge applied to stamp duty introduced in October 2016, and the additional two per cent surcharge applied to land tax introduced in 2019 on Queensland property held by foreign entities.<\/p>\n\n\n\n

REIQ CEO Antonia Mercorella explained that both additional taxes on foreign investors \u2013 who are already being taxed at a Federal level \u2013 act as a deterrent for capital to be deployed in Queensland.<\/p>\n\n\n\n

\u201cWhen the Labor Government introduced additional surcharges for property transactions from foreign buyers, the REIQ called it out as a cash grab which would deter desperately-needed property investment and would slam the state shut for business,\u201d she said.<\/p>\n\n\n\n

\u201cA growing population is a great thing for our economy, but in order to welcome more people and reap these benefits, we also need to be welcoming investment in housing \u2013 particularly when it helps get new residential supply off the ground.\u201d<\/p>\n\n\n\n

Ms Mercorella said that given the current housing crisis it was time for these taxes to be fully phased out.<\/p>\n\n\n\n

\u201cWith about 36% of people in Queensland living in rental accommodation, the supply of rental properties is crucial, and therefore we need investors \u2013 both local and foreign \u2013 to make important contributions to the stability of the rental market,\u201d Ms Mercorella said.<\/p>\n\n\n\n

\u201cQueensland Revenue can offer ex gratia relief where projects enhance the community or the economy,\u201d she explained.<\/p>\n\n\n\n

\u201cGiven the ongoing housing crisis, surely any projects that provide a roof over the head of Queenslanders and increase much-needed housing stock would meet this criterion.<\/p>\n\n\n\n

\u201cWe saw that with Build to Rent projects the Government was prepared to offer this relief to large foreign multi nationals investing in that asset class.<\/p>\n\n\n\n

\u201cThis leads to the danger of a skew towards this asset class when diversity is required to meet the ever-changing demands of Queensland\u2019s growing population.<\/p>\n\n\n\n

\u201cTherefore, the REIQ\u2019s view is that it would be appropriate to extend this exemption to all foreign investors, not just foreign pension funds and developers.\u201d<\/p>\n\n\n\n

She said that a recent ruling in New South Wales found foreign investment surcharges to be in breach of Commonwealth Double Taxation agreements.<\/p>\n\n\n\n

\u201cThis ruling also gives weight to the argument that the Queensland Government needs to fully rescind these additional taxes to ensure Queensland aligns with Commonwealth laws and agreements,\u201d Ms Mercorella said.<\/p>\n\n\n\n

This article was contributed by REIQ.<\/p>\n\n\n\n

You can find more information at: https:\/\/www.reiq.com\/<\/a><\/p>\n\n\n\n

Original article source: https:\/\/www.reiq.com\/articles\/time-to-wind-back-foreign-investor-surcharge-says-reiq\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Real Estate Institute of Queensland (REIQ) is calling on the Queensland Government to rescind foreign investor surcharges, in light of the state\u2019s housing crisis. The REIQ has long-opposed both the seven per cent surcharge applied to stamp duty introduced in October 2016, and the additional two per cent surcharge applied to land tax introduced in 2019 on Queensland property held by foreign entities. REIQ CEO Antonia Mercorella explained that both additional taxes on foreign investors \u2013 who are already being taxed at a Federal level \u2013 act as a deterrent for capital to be deployed in Queensland. \u201cWhen the Labor Government introduced additional surchargesRead More →<\/a><\/p>\n","protected":false},"author":1279,"featured_media":3442,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mbp_gutenberg_autopost":false},"categories":[7,6,29,53,4],"tags":[],"_links":{"self":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/3441"}],"collection":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/users\/1279"}],"replies":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/comments?post=3441"}],"version-history":[{"count":1,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/3441\/revisions"}],"predecessor-version":[{"id":3443,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/posts\/3441\/revisions\/3443"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/media\/3442"}],"wp:attachment":[{"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/media?parent=3441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/categories?post=3441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theonsitemanager.com.au\/news\/wp-json\/wp\/v2\/tags?post=3441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}