Queensland's land tax threshold is 12 times higher than Victoria's, do we need reform?

In recent months, property values in Queensland have experienced significant increases, prompting calls from the Real Estate Institute of Queensland (REIQ) for the government to reconsider its land tax threshold. Currently set at $600,000, this threshold has remained unchanged since 2007. The REIQ expressed concern that this figure is no longer reflective of current property market conditions, particularly given that land values have soared. As of the last financial year, over 194,500 properties in Queensland were subject to land tax, marking a 14 percent increase from the previous year. This situation highlights an increasing number of homeowners and investors entering the land tax bracket due to rising valuations. Despite these pressing issues, a spokesperson for Queensland Treasurer David Janetzki stated that the government has no plans to alter the land tax settings. They defended the $600,000 threshold, pointing out that it means many individuals with smaller investment properties only face minimal tax liabilities. Furthermore, it was noted that Queensland's land tax threshold is considerably higher than those of other states. For context, Victoria is set to reduce its land tax threshold to just $50,000 starting January 1, 2024, making Queensland's threshold twelve times greater than Victoria's. The question of whether the increase in land values could lead to heightened rental costs was met with uncertainty, as the spokesperson declined to comment on that specific concern. Instead, they emphasized other broader initiatives being undertaken by the state government to tackle the current housing crisis, which has raised significant public awareness and concern. Antonia Mercorella, the CEO of REIQ, expressed hope that housing remains a priority for the new leadership in Queensland. The REIQ argues that a reevaluation of the land tax threshold is essential, not only to adapt to the skyrocketing property prices, but also to keep the dream of homeownership alive for ordinary Queenslanders. Mercorella stated that the current situation has diluted what was once seen as the 'great Australian dream', stressing the critical necessity of affordable shelter for all citizens and the importance of bringing attention back to housing strategies. This dialogue continues as stakeholders from different sectors express their opinions and hopes for a more favorable environment for land ownership in Queensland.