The Real Estate Institute of Queensland welcomes measures outlined in the Federal Budget that will benefit the property market and help the many small business owners within the property profession. In addition, the REIQ was pleased the Treasurer did not make any changes to concessional tax arrangements and negative gearing, ensuring stability will continue in the property investment and rental sector. 

Two key measures were very pleasing - small business with an annual turnover of less than $2 million will benefit with a lower tax rate, dropping from 30 per cent to 28.5 per cent. And all items purchased for the business, up to $20,000, will be immediately 100 per cent tax deductible, a measure designed to encourage investment in business assets and put money back into the economy. 

Many real estate agencies are small businesses and they will benefit directly from this Budget measure. The Queensland residential real estate profession employs 50,000 and contributes $8 billion to the economy. The extensive infrastructure projects announced in the Budget will indirectly benefit owners whose property values are improved due to greater accessibility to public transport, roads and rail.

The REIQ welcomes the Government’s drive to restore consumer confidence and get the economy into a stronger position. When consumer confidence is thriving, the benefits flow through to all parts of the economy, including the property sector.

The REIQ supports measures introduced in this Budget to police existing legislation pertaining to foreign investment in property. Third parties, such as lawyers, accountants or real estate agents, who knowingly assist in any breaches will also face civil and criminal penalties, including fines of $42,500 for individuals and $212,500 for corporate breaches.

In our experience, real estate agents are law abiding members of the community who understand that they must act within the law and the REIQ agrees with the policing of legislation.