Sovereignty architect, Stephen Petith, shares his view on the latest QLD land tax Legislation and what you need to beware of if you’re an investor in the property market.
Queensland Land Tax Legislation Transcript
So one of the guys that I talked to about it, he said it could destroy the Queensland property market overnight.
What Queensland is going to do is they’re going to raise land tax on your Queensland property based on how much property you own outside of Queensland and whether the property you have is occupied or not.
So, say, for instance, you own a house here in Queensland, it’s a rental property, but you also own a house in New South Wales and a house in Victoria.
Now, the one in Victoria just happens to be not rented out because that’s your principal place in residence or it’s your holiday home.
Now, what the Queensland Government is going to do is it’s going to go New South Wales home, Victoria home that’s not rented out, or we’re going to triple your land tax in Queensland, not based on an improved property value in Queensland, but purely based on you have property elsewhere.
It’s ridiculous. We hope this doesn’t get through.
I’m really sure it’s in Parliament that hasn’t been passed yet, or it’s about to be passed, but they’ve really kept it quiet and snuck it through the back door.
I’m really dumbfounded of what’s happening up here at the moment is we’ve got Queen Palaszczuk, she’s getting ready to eject, so she’s trying to get herself up.
She now has someone that carries shoes for her to press conferences and stuff, plus aides that take her notes.
The Queen doesn’t have as many staff as this woman does and it just goes to show you that they’ve become so out of touch with the people that they’re supposed to be representing.
Meanwhile, and remember, these people, they are supposed to represent us, right? Not govern us. There’s a difference.
Now, they are put in to represent the people and to govern as the people’s representatives. What we’re seeing now with governments, especially all over the world, is that they no longer represent the people, they only ever represent the small Twitter, artie and the inner-city elites, which are all going to vote for them anyway.
And this is both parties, and pretty much a lot of the minor parties I’m seeing as well are all in the same boat now.
They’ve stopped representing the people and they’ve started governing because they think they’re kings and queens. Yeah, we’re seeing that with Palaszczuk.
And this law says that that’s what she thinks she is.
She thinks that she is the Queen of Queensland and Queensland is its own kingdom.
Because now, if you’ve got property elsewhere, I’m going to tax you on it because I don’t want you to have that.
You should be Queensland and Queensland only. So these are the things that’s just maddening.
One of the models that we saw that was in their own paperwork was a quadrupling of your land tax. So if that’s the best outcome that they could put in their own propaganda was a quadrupling $2,000 to $8,000 in land tax.
Imagine what the worst one is. So these are stupid things that we’re seeing.
The problem is there’s no opposition at a state level. There’s no opposition in Queensland, Victoria, New South Wales, WA.
There’s just no opposition anywhere that could be a sensible alternative. We’re going backwards at a fast rate of knots.
With something like that, it kind of will turn a lot of Australian property investors off from that market.
So it will be interesting to see how that plays out, where the investors kind of look for other options. What do you think of that?
One of the guys that I talked to about it, he said it could destroy the Queensland property market overnight.
She said, because the majority of investors in Queensland are foreigners. And I’m talking about foreigners, I’m talking about people who aren’t resident in Queensland. Right.
So they’re either resident New South Wales, Victoria somewhere else, and their holiday homes in Queensland.
That’s most of the Gold Coast property. Yeah. It could be devastating for the Queensland economy.
Just this one thing, the only thing that and most people are aware of it, I’m sure, is that Australia’s economy on the construction sector.
We have a big construction, new home, this whole drive to be a first homeowner and all this sort of stuff is all about keeping one massive sector of the economy going.
And it’s a massive Ponzi scheme. So this could be the one that drops the Ponzi scheme.
Well, yeah, it would certainly not be appealing to actually go into that market then. Would there be any point becoming a property investor in Queensland?
If that comes through, you’d just be destroyed.
They’re just going to take my profit now. This is where playing the corporation game and making sure you’re structured in a way to take advantage of this.
There are ways that you could do it and ways that you can structure yourself so you weren’t deemed to be an investor in another state.
But it’s just maddening that they even think about doing this.
Do you think that will actually come through or you kind of think it’s more to scare people?
No, it’ll get through easily. It’ll be an interesting site. Probably both. Yeah.
I’ll be interested to see how quickly that destroys the economy, because I can’t imagine anyone’s going to sit there and take it.
You’re going to have to make quick moves.
Aiden, just ask, can you incorporate a company into state and transfer the property into the company?
Aiden can, but it comes down to owners. So even if you incorporate a company in its principal place of business and its registered address is in Queensland, for instance, if the owners are in New South Wales, it will be deemed as a New South Wales owner of that property.
So what you need to do is separate ownership and control of the property through and it will get very complicated, very quick. Yeah.
You got to make sure the structure that you put in place does not make it work through.
And sit down with someone who can do the steps for you.