Qld property sector hit by Budget tax hikes

The Queensland Government has received the lowest confidence rating in the nation by an industry that was hit for six by the State Budget.

QUEENSLAND’S property sector has savaged the performance of the State Government, after tax hikes were unveiled in the Budget in June.

A new nationwide survey has found that the second-term Labor Government ­continues to be panned by its local ­property industry, worse than any other state or ­territory administration across the country.

Qld business confidence at lowest point in six years: YouGov poll

Property sector facing short-term crisis of confidence

However the latest ANZ/Property Council survey also found the Queensland ­industry’s angst was not confined to the State Government, with confidence in the performance of the Federal Government also declining sharply.

The survey of more than 1000 developers, managers and agents in the property game comes after Treasurer Jackie Trad unveiled extra slugs on landowners and foreign buyers in her Budget.

Property Council Queensland executive director Chris Mountford said the survey results were an indictment on the performance of the Government.

“These tax increases in this year’s Budget will effectively double the tax liability for many Queensland investors,” Mr Mountford said.

“At a time when we need to do more to catch up with other markets, increasing taxes on property is a big economic risk and one that is clearly impacting on local confidence.”

The survey has shown that the Government has been in negative territory for the past year.

But the performance index showed an 8 per cent decline over the past three months.

Property taxes and charges (23 per cent) were the most critical issue, followed by the need for planning and ­regulation reform (21 per cent) and housing supply and affordability (19 per cent).

Sentiment towards the Federal Government in Queensland fell from the highest level across the country in September, but the property sector still rated the re-elected Coalition administration in positive territory.

Overall, the Queensland property industry’s confidence was among the lowest across Australia, with only the South Australian sector chalking up a worse result.

Mr Mountford said the property sector was critically important to the Queensland economy, and the State Government tax hikes would have a bigger impact than it realised.

“Foreign investment underpins so much of the Queensland property market, and any disincentive to this investment is going to cost local jobs,” Mr Mountford said.

“The impact of these proposed tax increases can already be seen in the figures. Queensland’s state economic growth predictions are well down.”