Qld housing crisis: Minister struggles to explain granny flat plan

The Deputy Premier has struggled to answer whether Queenslanders renting out granny flats to ease the housing crisis could be liable for extra tax.

Planning Minister Steven Miles has backed controversial changes to Queensland’s land tax laws, saying he did not believe the government had broken a promise to voters of no new taxes.

But the Deputy Premier struggled to answer whether Queenslanders opting to take up the state government’s new push to rent out granny flats to help ease the state’s housing crisis could be slugged extra tax under the scheme, saying: “I’m not a tax adviser.”

Mr Miles is the latest minister to back the state’s change to land tax legislation ­– which will see, for the first time, the value of interstate property used to calculate the rate of tax owners pay – despite economists and real estate experts saying it could drive investors out of Queensland, and push up rents.

Asked on Friday whether he supported the change, Mr Miles said: “I’m a member of the cabinet, the cabinet of course endorse every measure in the budget.”

Pressed again on whether he personally supported the measure, he said: “Yes.”

“The measures put in place in the budget are designed to ensure that we can deliver the services that Queensland needs,” Mr Miles said.

Planning Minister Steven Miles on Friday. Picture: John Gass/NCA NewsWire

“Every dollar raised from our revenue measures goes into our schools and our hospitals, building roads and indeed, building houses.”

While announcing changes to the state’s planning laws which will remove restrictions on people renting out granny flats, Mr Miles appeared to admit the land tax would have an impact – though described it “marginal at best”.

Asked whether repealing the land tax changes would help Queenslanders more than the planning changes, he said “this measure (the change to granny flat restrictions) we hope, will unlock thousands of homes”.

“Those property holders who have been exploiting a loophole by buying properties in other states, that incentive to buy those properties in other states will be removed.

“This is not a new tax, it’s an adjustment to how the threshold is calculated.”

And on what the land tax implications of the announcement could be, Mr Miles said it would “depend on the arrangements”, such as whether the granny flat was at a principal place of residence.

“There is certainly no intention for this to be revenue raising in any way,” he said.

“I’m not a tax adviser, but my understanding would be if that property remained their principal place of residence then that would continue to be so.”