NSW Premier Dominic Perrottet vows to protect state’s landlords

“If Dominic Perrottet wants to side with property speculators who are coming up to Queensland, flipping properties, making money and squeezing out Queenslanders from buying a family home, that’s entirely a matter for him. That’s not the path we are going down,” Mr Dick said.

“The data we need to make these changes is already publicly available. If he doesn’t want to help us, that’s fine, we don’t need him. We don’t need him to close this loophole.”

Queensland has yet to formally ask other states to help provide data for the new tax.

Mr Dick said Mr Perrottet’s announcement was all about next year’s state election, pointing out that the NSW Premier had already suggested putting a land tax on every household, as a replacement for stamp duty.

“I do know why DP is making these statements today. He’s six months out from an election. He’s tanking in the polls and he’s likely to lose,” he said.

NSW has questioned the constitutionality of Queensland’s land tax scheme, which will assess a landholder’s property portfolio in all states before applying land tax in its own jurisdiction.

But Mr Perrottet ratcheted up opposition on Monday by saying NSW would not hand over data from its citizens to help the Palaszczuk government implement the new tax, which is expected to raise $20 million a year from 2023-24.

“This is a tax implemented by a state that impacts the residents of NSW. It’s wrong, and we’re not going to comply with it,” Mr Perrottet said.

“This is poor financial management by a Labor state government impacting the residents of NSW. No one is safe across the country from Labor’s taxing. They’ve gotten over taxing their own residents and are now trying to tax everybody else across Australia.

“It is lazy policy to simply increase tax.”

Mr Dick announced the tax change in December last year, claiming it would close a tax loophole that allowed property owners to avoid paying their fair share of land tax in Queensland.

Previously, Mr Dick said Queensland Treasury would work with the revenue offices in other states to collate data to assess the land tax owing. The scheme is expected to affect about 10,000 investors.

But Mr Dick signaled on Monday Queensland Treasury could proceed without a data feed from other states, putting the responsibility on individual landholders to be upfront about their investments.

Queensland Treasurer Cameron Dick will not back down on the land tax change. AAP

“People who own property have an obligation to make a declaration, as we all have an obligation when we make income tax,” he said.

“[It’s] an honesty system, backed up by the work of the QLD revenue office.”

A Sydney-based investor told The Australian Financial Review earlier this month that his land tax bill would jump by about $27,000 next financial year under the state’s new tax rule.

Another said his land tax would rise by between $15,000 and $20,000 a year.

Property industry bodies have warned the scheme will push up rents as well as turn investors away from Queensland, saying it was a form of “double taxation”.

Criticism is also intensifying among industry groups, which hit out at the Queensland government on Monday for poor consultation while praising NSW for refusing to share information regarding its residents’ property holdings.

Accounting body CPA Australia said the new tax would see many interstate residents being taxed twice, first by their home state where investors pay land tax and then again by Queensland.

CPA senior tax expert Elinor Kasapidis blasted the move as a revenue grab and the result of poor financial management. She also said the tax grab was indicative of a broader need for GST reform around the country.

“Queensland’s new land tax is not a good idea,” Ms Kasapidis said.

“Governments are casting around for ways to repair their bottom line, but there are better ways to fill the public coffers than by double taxing landowners.

“We support the NSW premier’s declaration that NSW will not go down the same path and we encourage other states and territories to commit to this position too.”

The NSW Property Council has flagged concerns about the tax and whether it is constitutional.

Acting executive director Adina Cirson said the industry group had directly raised concerns with the Queensland government and was also seeking legal advice from NSW property owners.

But the NSW property group stopped short of voicing support for the NSW government’s decision not to cooperate, arguing that the decision would transfer the burden in reporting property holdings onto individual owners, which would put them in an invidious position.

“This decision means there’ll be self disclosure required, which puts property owners in a really difficult position,” Ms Cirson said.

But the biggest impact of the tax would likely be felt in the rental market, Ms Cirson said, as investors grappled with a new barrier or disincentive to purchase investment properties and apartments.

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