Impact of Change in Land Tax

Client: Property Council of Australia (QLD)

State: QLD


In its 2019-20 Budget the Queensland Government introduced a range of amendments to the land tax regime, including the introduction of a foreign investor land tax surcharge of 2.0%. The introduction of the 2.0% foreign investor surcharge effectively doubles the land tax payable by a foreign property investor.


AEC undertook a review and assessment of the economic ramifications of the foreign investor surcharge to provide evidence and context to justify a potential exemption framework from the foreign investor land tax surcharge. The assessment examined a range of potential asset classes to understand the potential increase in costs for foreign investors over an asset life cycle, implications on the feasibility for development of new build and investment in existing assets for foreign investors (and likely ramifications in terms of reduction in investment), and the overall impacts to the broader Queensland economy resulting from this reduction in investment. A potential framework for exemption from the surcharge was then proposed to minimise adverse impacts on the Queensland economy.