The Queensland Government has been forced to pay a $10 million penalty after it agreed to pay out $12 million in property tax over four years.
The Government had promised to pay the $2.5 million in penalties in 2019 and $4 million in 2020, but the State Government has paid the penalty so far, and is planning to pay it again next year.
The State Government had already paid $9.5 billion in property taxes over the past four years, including $2 billion in interest.
The Treasurer has told ABC News the $10.3 million penalty is “fair” and “reasonable”.
“It’s a bit of an odd situation because, for me, what we’ve done is we’ve set up a new scheme to deal with that issue, which is, we’re now taking the money out of property tax in Queensland,” he said.
“The way that this works is that, if you’re paying more than the amount that’s already paid out, you have to make a contribution to the scheme.”
You pay the higher amount, and if you have no money to pay you can’t pay, but if you’ve got some money, you can.
“The Treasurer said that for people who don’t have any money to give, the government will make a donation to the Salvation Army to be used towards the program.
He said he was hopeful the State would pay the remaining $10m.
The ABC understands that the Government has agreed to repay the penalty in three ways.
The first is to refund the full amount of the penalties owed.
The second is to provide $1 million to the local community housing trust fund, and the third is to cover a “cost of living adjustment” of $1.3m.
A Salvation Army spokesman said the money would go to a housing and homelessness charity.”
While the Government may not have made a profit, the money will go to our charities,” he told the ABC.”
It will go towards housing costs and we’re happy to use it for other purposes as well.
“He said the Government was committed to reducing homelessness, particularly in remote communities.
The Salvation Army also said it would help those with a disability.
The Federal Government will now have to decide how to proceed with the matter.
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