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Bligh/Beattie Labor Budget should cut property taxes.

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Sunday, 20 May 2007

Bligh/Beattie Labor Budget Should Cut Property Taxes

Peter Beattie should use the upcoming Queensland State Budget to scrap Labor’s property taxes on homes which have hurt Queensland families for too long, Peter Dutton, Minister for Revenue and Assistant Treasurer said today.

“If Labor was serious about helping ordinary Queenslanders, they would provide real relief in the June State Budget for people seeking to own their own home,” Mr Dutton said.

“Property Council figures show that in Queensland alone, the proportion of the cost of a new home unit that goes to the Labor Government in taxes is 26.9%. On a unit with a sale price of around $422,825 that equates to $113,849.” (Property Council of Australia 2005)

“We also know that figures recently released by the Australian Bureau of Statistics show that property taxes are now the largest source of revenue for state governments,” Mr Dutton said.

“In 2000-01, the Beattie Labor government collected $930 million in property taxes from homebuyers. This is forecast to blow-out to $2.8 billion at the end of the 2006-07 financial year - an increase of over 300% in six years.”

“In 2005-06 states across the country collected around $11 billion in stamp duties alone. In 2001 the figure was half that amount.”

“It is disgraceful that first homebuyers in Queensland are being locked out of the housing market through Labor’s exorbitant state government taxes,” Mr Dutton said.

“Most significantly, there is absolute silence coming from Kevin Rudd on this issue. For someone who wants to stand up for Queensland, he has been deathly silent,” Mr Dutton said.

“If as he claims, Mr Rudd is such good friends with Peter Beattie, in the interests of all Queenslanders, especially first home buyers, he should insist that Mr Beattie cut these taxes in the upcoming budget”

“Federally, the Howard Government has delivered a strong economy, with the lowest unemployment in 30 years and strong growth in real wages.”

“With Australians enjoying real economic prosperity, Labor must be called to account for their economic mismanagement in driving home ownership out of the reach of so many people through their heinous property tax regimes,” he said.

Media Contact: Brad Emery (02) 6277 7360 - 0414 225 638