This article was posted on the Medium website 21 August 2018:
the-land-tax-absentee-surcharge-debacle-of-queensland-state-government-australia
2017 QUEENSLAND LABOR GOVERNMENT BUDGET
In May 2017 the Australian Queensland Labor Government headed by the Premier Annastacia Palaszczuk, released a State Budget that was announced in Parliament by the Treasurer at the time Curtis Pitt.
This announcement was about to unexpectedly massively hit the hip pockets of many property owners — whether they be the actual home owner occupants, investors, Australian citizens or foreign buyers. It did not matter.
One of those announcements was that there was to be the introduction of an ‘Absentee Surcharge’ with a reduced threshold of Land Tax from the usual $600,000 land valuation down to $350,000.
The Absentee Surcharge has been set at 1.5% and the Land Tax increased to be set at the Corporate rate, being the same for Company and Trustee titles.
land-tax-increase-for-australian-expats-queensland
The ‘Absentee’ criteria was set for anyone being absent from Australia totaling a period of more than 6 months of a financial year (Financial Year is from 1 July to 30 June).
The only exemption from being an Absentee was restricted for approved Government employment in overseas positions as well as 5 year periods for employees of approved private companies who have been employed for at least one year in that company in Australia to begin with.
The Labor Government also decided to make this legislation retrospective, meaning that they backdated the ‘Absentee’ period to before the budget, to start at the beginning of the Financial year on 1 July 2016.
As a result, anybody absent from 1 July 2016 to 30 June 2017 for more than than the new 6 month time limit would now be liable for the Land Tax at a reduced threshold to $350,000 land value, at the Corporate rate equivalent, as well as the 1.5% Absentee Surcharge.
There was no forewarning of this new legislation being passed into the QLD Land Tax Act. There was no grace period, no allowances, no extensions or any provisions in the Act to allow any other form of exemption. It was an open slather approach to capture all people absent.
During the Budget announcement, Treasurer Pitt glossed over certain details and to many, the Absentee Surcharge was reported as being legislation just targeting Foreign Investors.
The fact that Australian citizens owning property in Queensland were also being targeted was not clearly revealed. Many media sources failed to report, or at the best failed to clearly disclose what was the ‘Devil in the details’.
Australia on the whole has implemented across its State, Territory and Commonwealth Legislation a raft of measures to deter Foreign Investors buying residential properties. This has been in an effort to curb the last decade’s housing booms across the country which certain economists feared to have artificially inflated property values by Foreign investors and priced poorer Australian citizens out of the housing market.
What the Queensland Labor Government has done is to take that one step further by targeting its own Australian citizens as well who breach the new 6 month curfew.
Australians (as like anybody else living in a Democratic society on Earth) for a myriad of reasons travel and move overseas.
In a globalized world it is often necessary to move overseas. Unimpeded freedom of movement outside and back to Australia has always been a Democratic freedom enjoyed by Australians. There has never been any time penalty imposed before to do this, as one would expect from a progressive democratic government.
REASONS FOR ABSENTEEISM
There is a misconception among some that people residing or travelling overseas for extended periods must be wealthy and deserve to pay additional taxes. This is definitely not the case for the vast majority of people.
Let’s highlight some examples of why people leave Australian shores for more than 6 month periods:
Education pursuits;
Career improvement or changing career paths (often this builds skill sets and develops Professionals that can benefit Australian people and the economy upon their return)
Overseas employment contracts where employment begins offshore. This can help family members get the ‘leg up’ they need to return to Australia in better financial shape.
Attend to families who at times need support.
Medical reasons where treatments are not available in Australia
Retirees who seek living in countries where the cost of living allows them to have a better quality of life and stretch out their retirement funds — many of which are self-funded retirees as well.
Taking a gap year, or extended leave/long service leave to pursue an extended vacation. Those taking such extended leave are often people needing a career break.
Old age pensioners wishing to take that long anticipated retirement trip of a lifetime.
— If you were a pensioner for example holding a house on a large plot of land in Queensland, were asset rich and cash poor (as many pensioners are — not willing to sell and perhaps hoping to pass on their inheritance), facing perhaps a Land tax & Absentee Surcharge of over $15,000 to $20,000 for being a week or few weeks over the 6 month curfew, you are caught in a massive predicament.
The financial repercussions of having to suffer such a significant economic loss would cause extraordinary stress and trauma for pensioners relying on a low income.
Unplanned extended absenteeism — You also have people who have not planned 6 month or longer periods of absence outside of Australia but due to unexpected circumstances they are unable to return in time.
— These can be people caught up in financial difficulties, being required to stay behind to assist a family member or loved ones in dire need, critically or terminally ill.
— Even more serious is for the travelers who themselves fall ill overseas and are not fit to fly back to Australia before the 6 month deadline. This puts those people in a quandary as to whether or not defy doctor’s orders and fly back at great risk to their health and even their life to avoid the massive penalty. Labor’s new legislation could and most likely will (if not already) cause the death of ill patients who try to avoid financial ruin.
There are plenty of other reasons that could be provided.
QUEENSLAND PROPERTY OWNERS DISADVANTAGED IN CHOICES
What is blatantly obvious is that all Queenslanders have now been put at a disadvantage compared to owners of properties in the other States and Territories. From the examples above one can see that Aussies owning property in Queensland now have to pause and consider whether or not they can afford to make the decisions that others can make.
Taking that job/career opportunity offshore could set you back when offsetting the tax liabilities. So you then need to weigh up if it is worth it? This gives other Australians owning property elsewhere that advantage to take that job/career offer without needing to hesitate.
Long Service leave may have to be taken at home or at a reduced time frame. Or maybe you will need to split up your leave now between financial years. Others owning outside Queensland can opt to take all of their time away as they desire without repercussion.
PRE-BUDGET — THOSE CAUGHT UNAWARE OVERSEAS
Before the 2017 Budget, there were also those who had already committed to being overseas or about to move or travel overseas. Moving and even just traveling overseas requires considerable planning and cost set-up. It means purchasing travel and global health insurance, international removalists, costly cargo, company costs to move employees overseas, Visas, booking and paying for flights.
Then there is accommodation, property leases including rental contract periods with bond deposits and defined minimal rental periods, vehicle purchases overseas and other expenses. Most of these costs are non-refundable. Many had already committed to such arrangements before the shock budget announcement.
Many absentee Australian citizen property holders living in their Queensland homes beforehand had and still have the intention of returning to their homes to live back in upon their return. Some may have left their properties vacant or have them still resided by partners or family members. But they, the owner as listed on the Title Deed, are still subjected to the Land tax and Absentee Surcharges.
Property investors often have invested using Superannuation, personal savings, and bank mortgage funds. Others (like me) may have used a combination of funds provided from life savings, early access to Super, medical retirement payments — insurance settlements for Workers Compensation or Work Injury Damages claims to place those funds into a safe investment that offers a rental yield.
Investors and owners alike had bought properties in Queensland in the faith of the government applying the laws at the time. Due diligence could not have foreseen the Budget surprise, that would implement an absentee surcharge and other punitive tax measures. Only those ‘in the inner circles’ would have been privy to this information.
The fallout is severe unexpected and unplanned costs. Not having these factored creates financial distress. It disrupts living arrangements overseas. Those affected also need now need to weigh up the benefits of holding or selling their properties and this could be for many at a financial loss.
LEGISLATIVE GUIDELINES OVERLOOKED AND IGNORED BY QLD LABOR
The Queensland Legislation Handbook Governing Queensland is issued by the Department of the Premier and Cabinet. The latest edition (5th) released in 2014.
“The Queensland Legislation Handbook outlines relevant
policies, recommendations, information, and procedures
for the making of law in the form of Acts of Parliament or
subordinate legislation.”
There are two chapters I wish to draw attention to in relation to how the legislation was unfairly introduced. These are excerpts of the relevant sections:
FIRSTLY:
“
7.2.7 Does the legislation adversely affect rights and liberties, or impose obligations, retrospectively?
Strong argument is required to justify an adverse affect on rights and liberties, or the imposition of obligations, retrospectively. Whether a statutory provision is in fact retrospective can often be difficult to decide. For example, difficulties occur where the provisions of an Act apply to an event that comprises several components, some of which happened before the Act’s commencement and some after. For subordinate legislation, the Statutory Instruments Act 1992, section 32 provides for the commencement of a statutory instrument prospectively. Only section 34 provides otherwise. Section 34 allows a statutory instrument to expressly provide for beneficial retrospectivity, that is, retrospectivity that does not decrease a person’s rights or impose liabilities on a person other than the State, a State authority or a local government. Subordinate legislation that purports to have an adverse effect can not be made without the authority of an Act. The former Scrutiny of Legislation Committee brought to the attention of Parliament all provisions in Bills that have effect retrospectively.33 While the committee generally opposed retrospective legislation, it conceded that on occasions retrospective legislation that is curative and validating may be justified.34”
SECOND:
“
7.2.12 Does the legislation in all other respects have sufficient regard to the rights and liberties of individuals?
The former Scrutiny of Legislation Committee consistently took the approach that the matters specifically listed in the Legislative Standards Act 1992, section 4(3) are not exhaustive of all matters relevant to an individual’s rights and liberties. The former Scrutiny Committee took an expansive approach in identifying rights and liberties. These include traditional common law rights, for example, the right of a landowner to the use and enjoyment of his or her land. They can also encompass, for example, rights that are only incompletely recognised at common law (for example, the right to privacy) and rights (especially human rights) that arise out of Australia’s international treaty obligations.45 The former Scrutiny Committee made comment about legislation in relation to the following broad principles:
• Abrogation of rights and liberties (in the broadest sense of those words) from any source must be justified, whether the rights and liberties are under the common law, statute law or otherwise.
• Restrictions on ordinary activities must be justified.
• Legislative intervention should be proportionate and relevant in relation to any issue dealt with under the legislation.
• Imposition of liability under legislation should provide for the following: − adequate definition of the basis for the liability, with reasonable defences − imposition of responsibility for the actions of others only with strong justification − an appropriate and fair onus and standard of proof − a single process for the liability, with all forms of double jeopardy being avoided as far as possible − equality under the law for all persons responsible for the events from which the liability arises.
• Treatment of all persons affected by legislation should be reasonable and fair.
• There should be a balance within legislation between individual and community interests.”
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COMMENT:
I argue that the retrospectivity of this legislation (backdated to begin 1 July 2016) definitely has decreased the rights and imposed severe financial liabilities onto property owners/land holders in Queensland.
People without forewarning have been unable to factor in decision making to either withdraw from purchasing property in the first place, not making overseas travel/living/moving arrangements that could adversely impact them financially as a result of the Land Tax & Absentee Surcharge (LT&AS).
Rights have been decreased as freedom of movement without financial penalty/duress has been removed unless you restrict travel movements out of Australia.
The retrospectivity of this legislation means that the many people who had already made various arrangements and financial commitments, moved offshore etc — have been forced to pay the LT&AS going back to 1 July 2016.
The legislation does not take into account the sufficient regard to the rights and liberties of the individuals at all. The ‘reasonable and fair’ treatment falls grossly short of that benchmark.
PRINCIPLES OF GOOD LEGISLATION IGNORED
The Office of the Queensland Parliamentary Counsel release a notebook titled “Principles of Good Legislation: OQPC guide to Fundamental Legislative Principles”. Within there are guidelines meant to be adhered to so as to ensure legislation that among other considerations is passed as being fair and reasonable.
A scrutiny committee is meant to oversight and review the proposed legislation changes as well.
There is mention several times on the impact of retrospectivity and as quoted on page 15 of the notebook, “The practice of retrospective validating legislation is not a practice the Scrutiny Committee endorsed.
It considered the practice could adversely affect rights and liberties or impose obligations retrospectively and therefore breach fundamental legislative principles. However the Scrutiny Committee recognised that there are occasions on which curative retrospective legislation which does not significantly affect individuals’ rights and liberties, is justified in order to clarify a situation or correct unintended legislative consequences.”
— THIS LEGISLATION DOES SIGNIFICANTLY AFFECT THOSE RIGHTS AND LIBERTIES. People locked into property purchases before the legislation are now a slave to QLD government and their taxes — restricting their financial freedoms and ability to live off rent.
It affects the liberties of those whether they live in the property or not to travel overseas unimpeded — now they are effectively prisoners of the state for 6 months of the year — or pay the penalty.
There are many consequences I am sure the Labor Government knew would occur but chose to ignore. No grace period for those caught in the trap means our rights have definitely been affected. Economically this is a Human Rights issue as well.
The way the taxes were introduced in such an unsuspecting and punitive manner screams abuse of power by the government. And its arrogance to ignore its unfair application of retrospectivity as well to implement the taxes in a back-dated manner.
DO NOT BUY QUEENSLAND PROPERTY AS AN ABSENTEE OR POTENTIAL FUTURE ABSENTEE.
Queensland has been touted by property agents as the next place to buy due to the lower housing prices compared to Sydney and Melbourne, which are currently entering a cooling to falling market after huge rallies.
Brisbane and other Queensland towns are now experiencing a more stable platform to invest and promising slow capital growth. But they are now faced with the dilemma of fully disclosing the pitfalls of investing in Queensland versus losing sales to overseas investors and Australian citizens who spend considerable periods of time overseas.
To many unwary investors, they could well be caught unaware if they rely on the advice of those selling them property in this market. Buyers need to be well and truly cautious buying in Queensland as a result.
If anyone does travel, may in the future travel overseas for work, plans long service leave extended vacations, gap years, splitting living arrangements between two countries, thinking of leasing their property out and residing overseas for extended periods — then my advice is DO NOT BUY PROPERTY IN QUEENSLAND.
Otherwise, you face the prospect of a raft of taxes that are so excessive they effectively can turn a profit making property that provides a decent rental yield into a liability and a financial nightmare.
The only exception would be if you only bought a property that fell well below the threshold land value of $350,000. But even then you are facing the risk of land valuations changing over time and your property exceeding that threshold.
Do you trust a rogue government like this to not make other changes in future budgets? There has already been further changes to property investors in the 2018 QLD Budget.
In my opinion it is best to consider the other States and Territories of Australia for property purchases. Renting in Queensland is the only safe alternative.
As each year progresses the Department of Natural Resources and Mines (DNRM) conducts Land Valuation assessments (valuated over a three year average), which in the current conditions are seeing considerable changes to values, enormously scaling up each year’s Land Tax and Absentee Surcharges (LT&AS).
This may seem positive to many as “Capital Growth is a good thing”. The problem is for those who bought property not long before the 2017 budget announcement. Due to set up costs involving taxes, duties, legals and commissions, owners usually need to spend several years holding the property before any Capital Gains are realised. This is especially the case if there were expensive renovations to a run down property prior to leasing it (as occurred in my situation).
In the meantime if one relies on an income stream from rental yields (like me and many others) that is being wiped out by the annual LT&AS, then unless you have an ability to draw off other sustainable income sources and absorb the LT&AS over several years, you are likely to be forced to sell at a Capital Loss. Holding the property becomes a liability.
QUEENSLAND LABOR GOVERNMENT’S FLAWED RHETORIC TO JUSTIFY TAXES AND SURCHARGE
The QLD Labor Government’s response to complaints about the LT&AS. The standard rhetoric reply given by the Labor government has been along the lines of spokespersons such as this comment that it was,
“Queensland’s longstanding position that absentees were subject to higher rates of land tax to account for the fact they were
“generally not subject to the range of taxes used to deliver the high-quality services and infrastructure that ultimately contribute to growth in Queensland property values”.
“These rates apply to people who do not ordinarily reside in Australia, including a person for more than six months ending on June 30”.
Refer to the Brisbane Times article dated 18 July, 2018.
I would never have invested into Queensland property
MY RESPONSE AS AN AFFECTED ABSENTEE TO THE SPOKESPERSON’S EXPLANATION:
Holding a property in Queensland as a non-absentee attracts Land tax if the land value is over the $600,000 threshold anyway. Absentees holding land valued at $350,000 or more, pay more than their fair share of LT&AS which is above and beyond any ‘additional’ taxes that we ‘apparently’ are not subject to. These other taxes by the way have me perplexed. What are they in fact and what could they possibly amount to?
Holding a property means you need to pay Council Rates, Water & Sewerage Utitility rates, Electricity rates, home and contents insurance, Body Corporate/Strata levy Fees (for strata titled properties), Property Management fees (for leased properties), Letting fees, advertising fees, Maintenance fees — tradespersons, annual compliance inspections, cleaners, replace and repair equipment and items.
Then there are periods where the property being leased may be vacant. So no income. There is GST paid on all fees and other taxes and levies imposed. On top of that there is Commonwealth income tax paid for any rental income received.
For many absentees they also may be considered as permanent non-residents according to Commonwealth Legislation so are subjected to a no-threshold flat tax rate from $0 up to the amount they receive per annum — a minimum of 32.5% tax on all income (residents receive a tax free threshold $0 to $18,000).
As we all know, the Federal Government also allocates funds to each State and Territory of Australia as a result of tax revenues raised.
Another flaw in the argument provided by the Labor government to justify the LT&AS is that not all investors live in Queensland. So when back in Australia and not being subjected to the LT&AS, they could be residing in another state where they are spending money and paying taxes elsewhere.
The same applies to many Queenslanders who own property in other states, who do not spend their money outside Queensland.
There is no way anybody as a non-absentee resident of Queensland would be paying the equivalent of the LT&AS fees. It is a totally false outrageous claim. It is a bare faced lie covered in political spin.
Forcing property investments to become financial liabilities is not a ‘fair share’ argument. I would welcome the Queensland Labor Government to provide justification as to how that would be the case.
The government’s argument to validate the LT&AS is obviously designed to hoodwink and convince the masses (whom QLD Labor must equate to having extremely low intelligence) that the LT&AS are fair and those who are absentees deserve to have to pay. Sure, absentees are able to spend their personal ‘after tax’ money on what they choose anywhere they want and that may mean not buying in Australia. Where people pay their ‘after tax’ income is their prerogative last time I checked in a Democratic society.
I will reiterate the point here that as a property holder we have already paid a large portion of rental yield to cover taxes and fees needed to hold and maintain a property.
But how far does the government want to go in determining what and where you spend your money? And if it is not within their parameters of where it should be spent, then this sends a clear message of a creeping Communism.
Labor does not mention how absentees spend their money, rather refers to the ‘range of taxes’ argument. But I suspect that is really what they meant.
The sad reality is that there are many Queenslanders who are non-the-wiser about the LT&AS as it was glossed over and surreptitiously slipped into the legislation with minimal comment and fuss so as to avoid scrutiny.
The targeted absentees affected are currently only in the few thousands, meaning we have minimal voting power, are not a threat to Labor Seats and many being overseas may often not opt to vote anyway for State elections.
The cash grab is in the many millions of dollars and absentees are easy targets.
Retirement dreams have been dashed, expats holding properties in Queensland now face the prospect of having to return to Australia at great cost for many, to cancel long trips, and become prisoners of the State of Queensland for 6 months of the year. Effectively this new legislation imprisons Queensland property owners for half a year — or face the penalty.
Queenslanders — you now have less freedom than your fellow State and Territory neighbours. You have been interned for 6 months of the year (unless you love paying taxes or are in the top 1% or so, of the very wealthy who can afford to pay)
Imagine this scenario: You have met up with friends/family on a much anticipated extensive trip away. They are all from different States in Australia. You unfortunately are a Queenslander subjected to the Land Tax and Absentee Surcharge. Everyone is planning to travel further on this great trip, but you are nearing the 6 month curfew.
Time for you to head back to the airport. It’s okay, they at least turn up to wave you goodbye. They have freedom you see. You do not anymore. The Queensland government has got you where they want you. As you hang your head in despair, you head back on the plane back to Australia with the full knowledge everyone else is continuing on with the trip away. This is a form of Communism. You are being controlled by the State by way of severe punitive measures.
Waving the Queenslander goodbye because his/her government has a 6 month curfew.
For many the alternative is financial hardship. Selling the property is often not an option — often based on capital loss versus capital gain.
Even worse for many absentees and investors is that any sale of their property is subject to the full Capital Gains Tax. When one looks at the anticipated increasing land valuation projections for Queensland — this means the LT&AS will exponentially rise effectively wiping out CGT profits anyway.
A ‘Catch 22’ for many retirees is that coming back to Australia has become so unaffordable but paying the LT&AS is as well. This could force those retirees to sell, downsize, and apply for the pension (old age or disability), getting access to ‘Centrelink’ (Welfare) and discounted/free pension health care. One could spend up all savings and then apply for Government housing and hence place a burden on the tax payers of Australia instead.
Self funded retirees by residing overseas demonstrate fiscal discipline, self-reliance and nil burden to the government. Often medical expenses are incurred overseas at own cost or through private health and travel insurance — not through State funded Hospitals and Medicare. So why attack the assets being held by them? What truly is the mindset behind this? There is absolutely no decent argument.
Exceptions for situations that may ‘embarrass’ the QLD Labor government — screams of unfairness and corruption.
The Office of the State Treasury responds to objections against the imposition of the Land Tax and Absentee Surcharge, outrightly rejecting claims based on the QLD Land Tax Act — having no provisions to provide exemptions. I for one have lodged an objection based on several factors including it being unconstitutional, unfair and not taking into account absenteeism due to medical reasons.
However, it appears that there are circumstances not published, not made known to the public, where intervention can be made to waive the taxes in what seems to be labelled ‘unintended consequences’. One such reported objection was assisted by Commonwealth influence in which an employee for an overseas aid organisation working on contract whilst holding a property in Queensland was subjected to the LT&AS. In what appears to be an swift attempt to avoid embarrassment that would have revealed how grossly unfair these taxes are, this employee no longer needs to worry about the taxes as they have been waived — despite there being no provision in the Act to be exempt.
I applaud the decision, however it leaves me and others very angry that if this is the case, then why isn’t my and others’ objections also given the same considerations? It is because we cannot embarrass and shame the Labor Government enough.
The consequences of the LT&AS have severely damaging outcomes which we also could argue are valid reasons to be treated the same and have the taxes waived. Is financial ruin and hardship an intended consequence? This is an example of high end meddling and corruption where fairness is not equal for all. If the legislation is so flawed that such an intervention was needed for this employee then it is obvious that there are major flaws to this legislation.
FEDERAL GOVERNMENT’S REMOVAL OF PRIMARY RESIDENCE EXEMPTION FOR NON-RESIDENTS
On February 8, 2018 the Australian government introduced a Bill removing the Capital Gains Tax (CGT) exemption when selling a main residence (Primary Place of Residence) by the owner of a property who is deemed a ‘foreign resident’. This includes Australia citizens deemed to be permanent non-residents according to Commonwealth legislation.
This unfortunate addition has added a layer of complexity for those owning property in Queensland. Although the Commonwealth’s ‘permanent non-resident’ status definition differs to that of Queensland’s ‘absentee’ definition, it further narrows the flexibility for property owners staying overseas. Unlike Queensland, at least this change has allowed those owning property before the Budget announcement to sell their property by the June 30, 2019.
Owners can of course return to Australia and re-establish their residency status in the future and hence claim for a CGT exemption if they decide to sell - albeit having to pay a portion of Foreign Resident CGT rate that also removes any CGT discount - for the time they were deemed 'non-resident'. Another nasty tax to massively compound the issues faced by Absentees.
The financial impact of the LT&AS on those living abroad may be too crippling for many though to retain their property, and they will be forced to sell their main residence whilst still deemed a ‘non-resident’.
The combined annual bills for the LT&AS and a property sale attracting a hefty CGT will wipe out any significant Capital Gains. For many this will result in an overall loss.
This adds to the urgency and further clarification in the decision making for many living abroad that owning an owner/occupied property, especially in Queensland, is very likely not a good investment choice.
THE ‘LOGIC’ BEHIND QUEENSLAND LABOR’S LEGISLATION CHANGE QUESTIONED
Why is it that Queensland cannot follow the same policies and laws of other states and only leave the absentee surcharge to those who are classified as Foreign Investors — not Australian Citizens? And what is the reason for this arbitrary figure of 1.5% anyway.
Why align the absentee category to match the Corporate Land tax rates as well? Labor believes it is targeting the ‘rich’ when they could not be further from the truth.
Many absentees reside offshore because of the inability to afford the cost of living in Australia. Their nest egg being tied up in a property. That’s all.
Queensland property owners are in the vast majority of cases not holding million and multi-million dollar properties like in Sydney and Melbourne. But New South Wales and Victorian governments do not impose absentee surcharges on its own citizens. Queensland property owners are in general the poorer cousins. So why punish them more? It creates yet more wealth disparity, disadvantage and discriminates you because of the State you chose to hold property.
Shame on Queensland Labor. Shame on the Premier Annastacia Palaszczuk and the deputy Premier and current Treasurer Jackie Trad.
QLD Labor Premier Annastacia Palaszczuk
They have eroded the rights and freedoms of all Queenslanders under their own noses, many still unaware of the restrictions now in place. The only State in Australia to implement this new form of control on its citizens.
If Queensland wished to implement such a punitive set of taxes for absentees, at the very least they should have made it known a long time in advance and allowed those affected or who may be affected to be granted exemptions and grace periods — depending on how committed they were at the time to the investment as well as overseas status.
QLD Labor Deputy Premier and Treasurer Jackie Trad
Hundreds of thousands of dollars individually and millions collectively have been spent on properties leading up the budget by unwary property owners and investors. Labor knew this but kept tight lipped to drop the bomb on Budget day — like a bad joke. People relying on a fair government have been totally betrayed.
As I have mentioned, it is unconstitutional and I am certain that the legislation should and could be challenged and defeated. We just need a thorough legal review to commence to determine how unjust, unethical, flawed and illegal this legislation is. Economic Human Rights appear to have been breached.
PROPERTY COUNCIL OF AUSTRALIA OBJECTS TO THE LAND TAX & ABSENTEE SURCHARGE
The Property Council of Australia is a staunch opponent of QLD Labor’s LT&AS laws as well as recent changes made in the 2018 QLD State Budget. As mentioned in the article referred to above (“I would never have invested into Queensland Property”) executive director Chris Mountford stated he was concerned Queenslanders living overseas would feel the sting of the absentee tax. He further added:
“We’re seeing Australians living, working or holidaying overseas being punished for retaining ownership of their intended long-term family home or other local property investments” .
“In some circumstances, they are being punished for investing foreign-earned income back into Queensland.
“This isn’t a tax on vacant properties, or a tax targeted at foreign owners, it’s a tax that is hitting ordinary Queenslanders whose circumstances have seen them spend some time abroad.”
As reported to me by the Property Council of Australia, “The Government has been trying to claim that the increases only effect those who are rich.” In that case, the QLD Labor government is delusional and grossly lacking in its ability to carry out proper analysis.
PLEASE JOIN FACEBOOK SUPPORT GROUP ‘QUEENSLAND LAND TAX AND ABSENTEE SURCHARGE VICTIMS’
If you are affected please join the Facebook Group and provide your experience and so we can collaborate and organise to take action. Please contact those who are or may be affected as well and ask them to join.
Please also contact the Property Council of Australia, The Property Owner’s Association of Queensland, your local Members of Parliament, the Premier of Queensland and the QLD opposition Leader (Deb Frecklington). Also please consider submitting objections to the Office of the State Revenue Queensland.
