QLD Budget ‘a dangerous game’ warns property industry

first_imgREIQ chief executive Antonia Mercorella.More from newsMould, age, not enough to stop 17 bidders fighting for this home4 hours agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investor4 hours agoThe Property Council warned that “unfortunately the Queensland government has succumbed to yet another potentially economically damaging additional tax on foreign investors”.“The introduction of a land tax surcharge on foreign property owners comes 12 months after the State government introduced an additional stamp duty surcharge on foreign property investors,” warned Property Council executive director Chris Mountford. “Both represent a broken election promise to not introduce new taxes, fees or charges.”He warned that the Queensland Government was putting housing supply, jobs and taxes at risk.“The Queensland government is playing a dangerous game by upping taxes on foreign investors.“If we keep pushing up the costs of investing here, ultimately another part of the globe will become a more attractive place to invest, and the money and associated jobs will be redirected.“We are not just competing with the southern states, we are competing with the rest of the world.” Property Council executive director Chris Mountford. Picture: Mark CallejaReal Estate Institute of Queensland chief executive Antonia Mercorella was disappointed that yet again the Palaszczuk Government failed to tailor the FHB grant towards existing housing in hard hit regional centres where there were already oversupply issues.“This (FHB) measure has been successful in the southeast corner, with the added benefit of additional supply moderating price growth where demand is strong. However, additional supply in regional Queensland is going to further slow these markets and make any price recovery much longer to come into effect.” Master builders deputy chief executive Paul Bidwell. Picture: Josh WoningMaster Builders deputy chief executive Paul Bidwell questioned why the Government continued budget for certain spending programs but failed to spend those allocated funds.He said the government had underspent its allocations by $1.7 billion annually for the past six years.“The government needs to ensure it spends all of the money it’s allocated, as well as show that it is prepared to pursue new opportunities to unlock investment,” Mr Bidwell said.center_img The Queensland government has been accused of having a blinkered view on housing to the detriment of the regions.THE Palaszczuk Government has been warned it is playing “a dangerous game” with the property market in its 2017-18 pre-election Budget.While the property industry welcomed the extension of the $20,000 First Home Buyers grant to the end of December, there is growing concern of a blinkered approach towards investors and regions that could backfire on Queensland.There was disappointment over the government’s failure to consider the regions in its FHB grant, instead continuing to support the South East corridor and ignore realities everywhere else in the state.last_img read more