The Queensland Government has announced it will close a tax “loophole” that sees people who own property in multiple states pay far less than those who only have real estate in Queensland.

Under current land tax rules, if you own $1 million of property based in Queensland, owners pay tax at a rate of 0.45 per cent.

But if you have $1 million in properties split across states, owners only pay the equivalent of 0.05 per cent in tax.

Treasurer Cameron Dick said it was aimed at interstate investors avoiding reaching the land tax threshold.

Queensland Property Council’s executive director, Jen Williams, said the organisation has some concerns.

“What we have seen is a move to a new way of taxing landholders in Queensland,” she told Scott Emerson.

“So land tax is a state-based property tax there’s no other state that taxes property owners based on the properties they own in a different state.

“So Queensland is essentially going to tax investors in Queensland for properties they own in NSW, Victoria, somewhere else in the country.

“So our huge concern is that people are going to sell their Queensland investment property, they are not going to pick Queensland as a place to invest in the future, because there is more tax involved if you choose to do so.”

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