Queensland Government’s strong stance on value-capture supported by industry
The Property Council has today welcomed the Deputy Premier’s warning about the tax hit Queenslanders would suffer if a poorly conceived ‘value capture’ framework was thrust upon the Cross River Rail project.
Queensland Executive Director of the Property Council Chris Mountford said that the property industry is concerned about the whirling-swirling debate about value capture engulfing key infrastructure projects across the country.
“The Queensland Government’s push to secure Cross River Rail has been welcomed by industry and the investigation of innovative funding models is necessary part of this. But there's nothing innovative about a big new tax on properties and businesses in Queensland. We have repeatedly cautioned that ‘value capture’ risks becoming a smokescreen for a new tax.
“We welcome the Deputy Premier’s comments today that some forms of value capture are just unfair taxes. This obviously aligns with the government’s commitment at the last election not to introduce new taxes.
“A poorly designed ‘value capture’ framework could end up as a tax on growth and undo the economic good that the project supposed to bring to the city.
“It is important to remember that property owners already directly pay infrastructure charges, GST, stamp duty, land tax, local government rates, capital gains tax and a raft of state and local government fees when developing and owning property. Most of these taxes already increase when the value of a property increases.
“And while we acknowledge there is some potential for the government to partner with property owners around stations and along the corridor to generate additional urban renewal, uplift and funding opportunities, so called ‘value capture’ activities will not come anywhere near plugging the current funding gap for Cross River Rail.
“The lion’s share of this project needs to be paid for by government if it is to proceed.
“Value-capture is not the main game when it comes to major infrastructure projects like Cross River Rail.