Queensland residents draws to the attention of the House land tax rates and threshold of $600,000 was last changed 16 years ago in 2008. Since 2008 land values have seen significant increases and more than doubled in Brisbane and many other areas. In Brisbane, the median unimproved land value rose to $620,000 in 2023, the result is well over half of residential land parcels now attract land tax and many have crept into even higher land tax brackets. The land tax rates and threshold are outdated and have not kept pace with land valuations.

Importantly, many investors with just one rental property will now see land tax as an added expense on top of other rising costs including council rates, interest, insurance, maintenance and administration. These small private investors, often 'mum and dad' or retirees provide a substantial portion of rental housing.

The land tax burden is a disincentive to investing in rental property and one result is many property investors will sell their rental investment to owner occupiers, thereby worsening availability of rental properties. Investors that do not sell will be forced to pass the cost of land tax onto tenants as a substantial rent increase.

Land tax disproportionately affects vulnerable people by removing affordable rentals from the market. 

Your petitioners, therefore, request the House to do all in its power to ensure an increase of the land tax thresholds to take into account the doubling of unimproved land value changes over the past 16 years.