Surcharges slammed for lack of foreign investors in Qld

A growing population, which jumped 2 per cent in the 12 months to June 2022, has been cited as a primary reason why the Palaszczuk government should rescind the surcharges, especially considering the incredibly tight rental conditions gripping large portions of the state. 

Ms Mercorella stressed that “in order to welcome more people and reap these benefits, we also need to be welcoming investment in housing — particularly when it helps get new residential supply off the ground.” 

Approximately 36 per cent of the state’s population rents, meaning supply is crucial, with the leading industry figure insisting Queensland “needs investors — both local and foreign — to make important contributions to the stability of the rental market.” 

“Queensland Revenue can offer ex gratia relief where projects enhance the community or the economy,” she explained, adding “any projects that provide a roof over the head of Queenslanders and increase much-needed housing stock would meet this criterion.”

Citing the state government providing such relief to build-to-rent nationals, who now opt to invest in the asset class as an example of how such relief can be provided, Ms Mercorella warned such actions “lead 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.”

She stated that the REIQ firmly believes “it would be appropriate to extend this exemption to all foreign investors, not just foreign pension funds and developers.”

A recent NSW ruling, which found foreign investment surcharges to be in breach of Commonwealth Double Taxation agreements, adds further weight to the argument the Queensland government “needs to fully rescind these additional taxes,” to ensure the state complies with Commonwealth laws and agreements.

Ms Mercorella’s comments follow similar ones recently made by Mike Zorbas, chief executive officer at the Property Council of Australia, who called on the nation to follow examples set in the US and UK and create legislation and regulations conducive to foreign investment.