The Queensland Major Contractors Association (QMCA) has backed the Queensland Division, of the Property Council of Australia (PCA) call for reform to address Queensland’s worsening housing crisis. The PCA has called for urgent action to remove barriers stifling development. With the state election fast approaching on October 26, the QMCA is urging both the government and the opposition to commit to reforms that will deliver much-needed homes for Queenslanders.
Andrew Chapman, CEO of QMCA, emphasised that immediate reform is required to reverse the state’s housing shortfall due to excessive and misaligned taxation.
“The current housing crisis is a direct result of unsustainable policies and taxation approaches hampering development when it is needed the most. The industry faces significant hurdles, with government policies acting as a brake on developing much-needed housing across Queensland,” Chapman said.
“The PCA report rightly identifies that the state has lost a potential 33,000 homes in the last eight years, and the impact is being felt across the state. These taxes have effectively turned away vital investment when it is needed the most, costing the state jobs, homes, and economic growth.” Chapman said.
The Property Council’s report highlights the staggering impact of these taxes, which have resulted in:
- The loss of 32,872 new dwellings since 2016
- A decline in international capital investment by 83.9%
- Between 21,129 and 37,972 lost jobs
- A reduction of $99.5 million in state revenue.
Chapman stressed the need for a balanced approach. “The QMCA is backing the Property Council’s call for an independent review of taxation on the property sector, with no net increase in taxation levels (and extended to the infrastructure sector too). This review must include the removal of handbrakes that are crippling the industry, like Best Practice Industry Conditions (BPIC) , a policy that has now impacted the housing sector making it more costly and difficult to deliver much needed stock,” he said.
“The current tax regime is not only stifling investment, but it is also failing the people of Queensland. We have become the high-tax, high-cost, low-delivery state, thanks to policies such as BPIC that have reduced productivity, and this must change to address the housing crisis, amongst many other challenges including health, water, transport and energy too.”
Chapman emphasised that government intervention is crucial. ” We need efficient investment allocations and policies that stimulate, not suppress, the housing market. The Property Council’s policy document provides a clear framework for these changes.”
Both the QMCA and the Property Council of Australia are united in their call for a tax review that is independent, inclusive of key stakeholders, and commits to no further tax increases.
