A Last Minute Back-Flip, A History Of Bright Ideas & A History Of Disappointments
Today, I was about to go into a wild rant about the State Government’s decision to alter current Land Tax legislation by penalising investors with property in Queensland as well as interstate, paying a lot more in land tax and effectively, these investors would have paid land tax in their home state as well as land tax to the Queensland government.
Since this change was announced, the Government received an enormous backlash from investors, market commentators, agents, the media and even the Real Estate Industry of Queensland (REIQ).
Many thought the changes would mean some investors would simply ‘dump’ their investment properties in Queensland and prefer to purchase elsewhere, with many of these properties being snapped up by owner-occupiers and thus placing an increasing pressure on the already strained under supply of rental properties…which would (of course) most likely cause rents to increase even further.
We had received countless enquiries from investors with many moving towards selling their investment properties so if this legislation were to take effect, the reaction to the market conditions would have been quite significant.
Fortunately, common sense prevailed and last Friday, the Palaszczuk Government announced that it would scrap the proposed changes that were set to take effect from the start of 2023.
So why did the Government abolish the plans for this tax?
Was it the intensifying storm from every direction or simply the leaders in the other States of Australia that suggested they would not share their residents’ property ownership data with Queensland?
Either way, the Government seemed to be backed into a corner.
Without trying to be pollical, the current State Government has recommended numerous changes to legislation regarding property with some of these changes implemented and others ending up on the scrap heap.
We’ve seen changes in tenancy laws (with some changes already implemented, others abandoned and some yet to take effect).
To me, many of these changes lack logic and already make it less desirable to own an investment property in Queensland.
Then we’ve seen changes to contract settlement law where either party can delay settlement for as many times as they like for a period up to seven days…and just like we predicted, this has created a huge amount of anxiety and stress for those affected.
And now, we’re seeing the Government attempt to increase revenue by turning investors away from owning property in Queensland.
Over the years, I’ve seen so many changes brought into effect by a politician who has no idea what they’re doing.
Do you remember the legendary ‘Sustainability Declarations’ that were a requirement around 15 years ago?
Back then, every property owner that listed their property for sale had to fill out a 2-page document that identified the number of environmentally friendly features of the property…things that included such items as the number of energy-efficient lights in the home.
The problem was that many property owners didn’t know if they were filling out the form correctly.
Solicitors became concerned that there might have been legal ramifications if the owner had filled out the form incorrectly…albeit quite innocently.
The result – owners were advised to sign the form as required but leave it blank.
Needless to say, this legislation was abolished within two years.
And around the same time, there was the incredibly well-thought-out legislation about the order of signing a contract and the order of viewing it.
An agent was required to highlight certain aspects of a contract before signing a contract but signing different parts in a different order to the order that they were to be presented…and then they were required to sign a form at the end of the contract signing to state that they confirm that they had signed the contract in the correct order…and even once this was done, they were to be provided with a copy of the signed document that they signed which stipulated that they signed the contract in the correct order… this copy was to be provided to them prior to the contract being dated – and no, this isn’t a joke!
As ‘Roy and HG’ would say, “we can’t even make this stuff up”.
Fortunately, common sense eventually prevailed, and this was sent to the scrap heap too.
It seems that every so often, someone who’s trying to justify their existence makes a recommendation with little thought as to the effect on the other side, how it can be policed and the ramifications of what detrimental impact this change will provide.
At the end of the day, the Land tax reform has been overturned and all goes back to normality, but one can only wonder what bright idea will come along next?
The next instalment of “a complete lack of common sense” is bound to be coming soon…
As for the Eels, I’m still recovering from Sunday night – so close yet so far from a long-awaited premiership but hopefully we can go one better next season.
Finally, to my beautiful partner Julie, I hope you have a lovely birthday next Tuesday and I can’t wait to spoil you rotten…especially given the huge amount of love and support that you give me.
Until next week…Happy Listing and Happy Selling.
Feature Property Of The Week
This week’s feature property is 48 Brownell Street, Warner – a superb low-set brick residence that provides 4 generous bedrooms, 2 immaculate bathrooms, 2 spacious living areas and a double lock-up garage. Neatly positioned on a large 641m2 allotment that backs right onto the picturesque parkland (and with only one neighbour at the side), this lovely abode is ideally positioned yet exudes complete privacy and tranquillity. Offering a fabulous outdoor alfresco that overlooks the sparkling in-ground salt water swimming pool and a front yard that’s full fenced to the boundary, this is a residence that offers so many unique points of difference. New to the market and already with strong interest, contact us immediately if you’d like to make a time to view this gorgeous home.
Sensational Family Home Backing Onto Parkland On A Huge 641m2 Allotment!
Insights Article…
As Michael has reported today, the Queensland Government has decided to over-turn their decision to change land tax laws from 2023. Here’s an article that might provide an insight as to the reasons behind their back-flip on this policy…
Click Here To Read Article
Did You Know?
Michael is inconsolable after the Eels grand final loss and he tells us that his mates have sent him every possible meme doing the rounds about Parramatta’s lack of success over a very long period. Just to rub it in, we thought we’d share a few of these with you…
Michael constantly surrounds himself with some of the best agents in Australia and often shares thought and ideas with them on marketing, negotiating, methods of sale, market conditions and new ideas. As such, he’s on the cuttings edge of new technologies and innovations that will help our sellers achieve more money for their properties.
