During Parliamentary Budget Estimates on Wednesday 28 July 2021, I asked whether the Government would consider a windfall gains tax on developers given the upzoning that will occur with the 2032 Olympics.
You can read the answers below or in the official Queensland Parliament Record of Proceedings (Hansard).
Mr BERKMAN: Thanks very much, Chair. I appreciate the chance to ask one question at least. Now that Brisbane has been confirmed as the host city for the 2032 Olympic and Paralympic Games, we are very likely to see significant upzoning of land that will increase that land value and generate significant profits for developers and speculators, without contributing necessarily any additional funding for public infrastructure. My question is to the director-general. Against that backdrop, has the government conducted any modelling or analysis of the potential for a levy on those kinds of land value gains made by developers, similar to the one recently announced by the Victorian government and already in place in the ACT?
CHAIR: Bear with us a moment on that. Certainly that was a lengthy question and you do have a hypothetical in asking for an opinion on this. Member for Maiwar, I noticed you said in the media the other day that you wanted to drill down into the detail of how the government is spending our money. We are looking at appropriations for this year, and I would suggest that certainly that question of a hypothetical levy or whatever is outside what we are looking at here today. Did you want to recast that question?
Mr BERKMAN: Has the government conducted any modelling or analysis? That is the question. Have you conducted any modelling or analysis of the potential for a levy, similar to the one that has recently been announced in Victoria and the one already in place in the ACT?
CHAIR: I think the part we can take from that is about modelling. The rest of it would be outside the standing orders. Mr Walker: In terms of modelling, I am not aware of anything within our department with regard to the 2032 games opportunity. I must say though it is 11 years away and we have got quite a bit of work to do to start to deliver on the conceptual plans that were put forward as part of the bid itself. We always, as part of advice to government, will consider a variety of options, and things like a levy are very much a policy decision of government. There have been things done over time that do seek to achieve uplift, and I can only think of the priority development areas and the precincts around Cross River Rail itself. There is an opportunity there for government to certainly start to see and reap some of those opportunities. Again, when planning is done, options will be put to government in due course.
Mr BERKMAN: Just a follow-on if I may to the Deputy Premier, taking the policy component of that question. I have put this question to you last year and I recall your response, but I am interested in whether the government is seriously considering that broader kind of uplift value levy to reflect what is being done in Victoria and the ACT.
CHAIR: Take a broadbrush approach to that question. Once again I note, member, that I have told you to talk about the estimates currently in front of us. However, I am going to let the Deputy Premier talk broadly about planning necessities for the 2032 Olympic and Paralympic Games.
Dr MILES: Clearly, it is going to be an ongoing conversation that we will be having over time and other jurisdictions will also be having the conversation. We have talked a bit in the hearing so far about infrastructure charging. That is one way we ensure developments contribute to the cost of infrastructure. The point the director-general makes I think is a critical one with regard to the 2032 Olympic and Paralympic Games. Due to our foresight with the Cross River Rail development and the protection of those precincts and the retention of the state’s ownership and power over the development of those precincts, the parts of the city that will benefit the most from the 2032 Olympic and Paralympic Games investments are likely to capture that value uplift in the precincts themselves. That is if you think about Bowen Hills-Roma Street, where there is likely to be a new arena and the Gabba station through to the Gabba stadium. Queenslanders will benefit very significantly from the uplift in value of those precincts by the delivery of rail, the redevelopment of the precincts and the investment in Olympic and Paralympic venues in those locations. We are certainly very focused on working with the CRRDA to ensure that those benefits are fully realised. That is where the focus of those conversations has been thus far. No doubt there will be ongoing discussions about what other areas will benefit from these investments.