Labor’s tax on rich ‘ to hurt all’

NEW homebuyers will be stung for an extra $ 1000 and small business hit with annual rent hikes of $ 1500 under supposed “Robin Hood” tax increases to be introduced from July 1.

The first detailed analysis of Labor’s election tax grabs on property has revealed the dual imposts will have a negative impact throughout the economy, reducing housing affordability and driving up business operating costs.

Property experts have warned the pain will compound the damage from tax hikes last term, including the absentee owner land tax surcharge which is hitting Queenslanders living and travelling overseas.

“With Queensland preparing to leverage the Commonwealth Games to attract new investment opportunities, these tax increases couldn’t come at a worse time,” Property Council Queensland director Chris Mountford said.

Labor insisted its proposed property tax hikes were “Robin Hood”- style revenue raising because only big business and the wealthy would be hit.

The slugs included a 25 per cent hike on land tax for holdings valued at more than $ 10 million and a steep increase in the foreign buyer stamp duty rates. But, developers warn land tax will climb steeply on greenfield residential projects and costs of about $ 1000 would be passed on to buyers.

“Each lot will wear a portion of those costs,” Alder Constructions Greg Tupicoff said. “That’s why I imagine that $ 800 to $ 1000 is about right.”

AVID Property Group general manager Bruce Harper said the flow- on costs would differ between developments but affecting affordability was inevitable.

“At the end of the day cost pressures are already high on greenfield sites and this will be another impost,” he said.

Many small and mediumsized business are tenants in properties that will be affected with the industry estimating annual leasing cost hikes of $ 1500 for a 500sq m space in Brisbane’s CBD.

Meanwhile, the Government’s land tax surcharge on absentee “foreign” landowners is hitting Queenslanders living and holidaying overseas.

Brisbane IT consultant Craig Smith, who is working in Fiji, said he had been advised the surcharge would apply to his two properties.

“I own two residential properties in Brisbane, hardly a real estate baron, and am struggling to understand the rationale to penalise Australian citizens who invest foreign- derived income back into their home state,” he said.