INCONSISTENCIES BETWEEN STATES OF AUSTRALIA REGARDING LAND TAX & ABSENTEE SURCHARGES

INCONSISTENCIES BETWEEN STATES OF AUSTRALIA REGARDING LAND TAX & ABSENTEE SURCHARGES

Interesting article. It was first published in the Australian Financial Review on Wednesday, 2 August 2017, by Matthew Cridland, regarding the inconsistencies between all the States in Australia imposing Land Tax and Absentee Surcharges.

Titled, "Foreign Investor Surcharges Illustrate Lack of Harmonisation in State Tax Policy".

As aptly stated in this online article, "While the foreign investor stamp duty surcharges may be justifiable on the basis of alleviating pressure on the price of residential properties, the Absentee Land Tax in Queensland and the Absentee Owner Surcharge in Victoria are more difficult to justify."

Queensland of course is the only state in Australia to impose an Absentee Surcharge on its own citizens. A move towards complete State control of property holders in Queensland.

Owning a property in QLD is not really 'owning' a property. It is a 'Claytons' ownership of land. The reality is if you were to fail to pay your Land Tax & Absentee Surcharge - eventually the QLD Office of the State Revenue would engage the State Debt Recovery officers to seize your land and property and it would be ultimately sold off. So, in reality we never 'really' own the land. We are leasing it in the form of paying taxes as 'rent' in my opinion.

Article link:

Lack of harmonisation of taxes between States