Overseas buyers will not have to pay the 3 per cent surcharge from next month if their project is considered to be a “significant development”.
The Property Council has welcomed the Queensland Government’s decision to provide some exemptions to its new tax on foreign investors.
“To pass this test the development by a foreign entity must include a minimum of 50 residential lots,” Treasurer Curtis Pitt said.
The exemption would also be given if the project was of significant benefit to a regional area.
Property Council executive director Chris Mountford remained opposed to the tax, but welcomed the relaxation.
“It has been well publicised that the Property Council does not support an additional tax on foreign investment on residential property in Queensland, or anywhere in Australia for that matter,” Mr Mountford said.
“This remains our firm view.
“However, the Treasurer has taken steps to ensure that developers providing much-needed housing and jobs across Queensland will be provided relief from the tax.”
Shadow treasurer Scott Emerson accused Mr Pitt of creating policy on the run.
“First Curtis Pitt promised at the 2015 election he wouldn’t increase taxes or charges or impose a tax on foreign investors, then he back-flipped and broke that pledge to Queenslanders,” Mr Emerson said.
“Now we have an exemption framework which is still not finalised and may cost more to administer than the tax actually collects.”