What a difference 12 months makes - our State Treasurer did a turnaround last week announcing in the week prior to his second budget that QLD will introduce a 3% surcharge of stamp duty for Foreign purchasers of residential property. This time last year the message was about increasing QLD's competitiveness for Foreign investment dollars and assurances that no surcharge would be imposed. Clearly the VIC government have been spruiking about what a money spinner its been!
The Treasurer's comments around wanting foreign investors to contribute to infrastructure and services that they receive the benefit of - are frankly a bit of a joke. Weren't they already paying the same as all other investors before? - So what justifies Foreign investors contributing more than domestic investors to local infrastructure and services?
I think there is naivety in selling this as a surcharge that will not impact Queenslanders. When foreign investors choose to take their capital elsewhere - this is not good for Queensland. Particularly at a time when there is nervousness around the level of apartment supply coming to the market, throwing an additional obstacle like a surcharge at foreign investors is not going to assist those currently marketing projects overseas.
Foreign investors would now have to pay an additional $10,962 on top of the existing $11,214 in transfer duty for a $365,000 house or apartment. "This will ensure foreign purchasers of residential property, who benefit from government services and infrastructure, make a contribution to their delivery – as local buyers do," Mr Pitt said. We are confident this surcharge – that does not affect Queenslanders – will also not affect the interest foreign investors have in sharing our state's economic strengths. "Property Council of Australia Queensland executive director Chris Mountford said it was a broken promise because the Treasurer emphatically ruled it out in May last year following Victoria's decision."The Treasurer has previously committed to making Queensland the most attractive state for foreign investment, now he is looking to abandon this competitive advantage in the search for more revenue,"