The Queensland Government released their COVID-19 Fiscal and Economic Review on Monday, but the Property Council of Australia says it’s a story of missed opportunities, and the state needs to take a fresh look at ways to stimulate the economy by creating jobs.
“The fastest way to get activity happening is to remove the regulatory and financial barriers that are inhibiting the private sector from creating jobs and delivering new projects,” Chris Mountford, Queensland Executive Director of the Property Council of Australia, said of the review.
“Along this vein, the Property Council is pleased to see an extension to the state’s land tax relief arrangements. This cost saving will assist landlords and tenants as they to continue to work together to navigate the current challenges.
“However, [Monday’s] Fiscal and Economic Review is really a story of missed opportunities to take any significant action that will generate new job-generating private investment.”
Mr Mountford highlights the differences between this recession and the GFC, and calls for a different response.
“Post-GFC there was a greater reliance on government expenditure as there was a shortage of private capital in the market.
“Now, however, the globe is awash with capital seeking a safe, secure return. Queensland is well placed to capitalise on this appetite for investment, however the settings must be right to make the state an attractive place for investment.
“Today’s announcement of a $1 billion fund for government to invest in private businesses is misplaced. Rather than encouraging more private investment, this decision risks placing government in competition with private capital.
“A more effective approach would see a revision of those taxation and regulatory settings that are preventing major investors from choosing Queensland.”
Mr Mountford suggests the removal of the foreign investor surcharges, reduction of land tax for build-to-rent, removal of stamp duty for off-the-plan dwellings, and changing the strata title termination thresholds.
“There are many ways the government could stimulate private sector activity rather than seeking to compete with it,” he said.
The Property Council also expressed concern that integrating Building Queensland and the Queensland Productivity Commission with the Queensland Treasury will remove transparency, and stop the bodies from carrying out independent reviews.
“As independent bodies, BQ and QPC were able to set their own review agendas and consult widely with the private sector.
“This decision to transfer both bodies ‘in-house’ restricts their autonomy and independence and will ultimately lead to more politically driven decision making.”
