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HIA research has demonstrated that taxes make up more than one third of the cost of building a new home in Queensland. Stamp duty in particular is an outdated tax. Any moves to reduce or beneficially re-shape stamp duty on housing will support homebuyers, encourage growth in the industry, and promote downsizing and general flexibility in a consumer’s ability to move homes.
As part of any stamp duty reform to be undertaken by an incoming government, HIA recommends abolishing the Additional Foreign Acquirer Duty (AFAD).
The AFAD increases stamp duty for foreign purchasers of Queensland dutiable property by seven per cent (7%) above the general applicable rate. There is also an additional two per cent (2%) land tax for foreign entities.
A level of foreign investment has historically supported Queensland’s home building industry, and has played a significant role in the delivery of high-rise apartment projects. Additionally, many larger volume building companies are partially foreign owned.
At its root, the AFAD is a regressive and selectively discriminatory tax, and should be abolished by a courageous government.