A state government backflip to shut down a controversial new interstate land tax has been welcomed by the real estate industry.
There were fears that a move to impose land tax on those who owned property interstate would drive investors away from the market.
“From the outset, the REIQ led with strong opposition to this confidence-shattering regime,” REIQ CEO Antonia Mercorella said.
“We feared the repercussions for our economy and the potential damage it would cause to residential and commercial rental relationships for a relatively insignificant gain.
“Our concerns were substantiated when we were inundated with messages from real estate, finance, and legal professionals who shared with us that they were already witnessing the blow to current and future investment confidence.”
Quarterly figures show rentals are in low supply, with just 0.7% vacancy rates in Logan.
“Against this challenging backdrop of insufficient housing supply, to see this amendment passed and the land tax regime put to bed, is a most welcome and sensible move,” Ms Mercorella said.
“For those who were concerned that the land tax regime was only being temporarily shelved and could be resurrected, it’s reassuring that the Treasurer has confirmed the tax will not be making a comeback.”
Ms Mercorella said the decision to scrap the land tax regime had allowed the focus to rightly shift to other housing crisis solutions.
