REIQ calls to ditch charges for foreign investors to easy housing supply issues

The state’s peak real estate body has urged the Queensland government to make a big change that could help solve an even bigger problem. VOTE NOW

The state government is being urged to ditch foreign surcharges on property investors, which the real estate peak body says acts as a deterrent for the much-needed supply of homes.

Real Estate Institute Queensland (REIQ) claim the surcharges are a “cash grab” given international buyers are already taxed at a federal level.

But a spokesman for Treasurer Cameron Dick said current tax concessions for international investors, such as the relief offered to build-to-rent projects, was reserved for initiatives that significantly contributed to new housing supply.

REIQ chief executive Antonia Mercorella said the surcharge deters “desperately-needed property investment” that would “slam the state shut for business”.

She called for the surcharges on both stamp duty and land tax for foreign investors to be phased out given the supply crunch contributing to the state’s housing crisis.

“With about 36 per cent of people in Queensland living in rental accommodation, the supply of rental properties is crucial, and therefore we need investors – both local and foreign – to make important contributions to the stability of the rental market,” Ms Mercorella said.

According to the Queensland Revenue Office, ex gratia relief can be applied to avoid the surcharge for foreign entities who make a significant contribution to the state economy and community.

Queensland Treasurer Cameron Dick said there are no plans to extend the relief to foreign property investors. Picture: NCA NewsWire / Dan Peled

But the spokesman for the Treasurer said the government did not plan on extending the relief to general foreign investors.

“The Palaszczuk government is only offering tax concessions that will demonstrably increase the supply of new housing, not those which may actually reduce the availability of existing stock,” they said in a statement to The Courier-Mail.

Ms Mercorella said any projects that add supply to the state amid the housing crisis should be eligible for the relief.

“We 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,” she said.

“This leads to the danger of a skew towards this asset class when diversity is required to meet the ever-changing demands of Queensland’s growing population.

“Therefore, the REIQ’s view is that it would be appropriate to extend this exemption to all foreign investors, not just foreign pension funds and developers.”

■ Full list of proposals to solve the Qld housing crisis