Property tax may deter buyers from investing in state, says long-time agent

Stamp duty on commercial properties will be abolished and replaced with the property tax.

This would be charged at a rate of one per cent of the value of the property each year but would not apply until 10 years after the property was purchased.

Mr Wilson said while this meant lower upfront costs, it would eventually pay dividends for the state government, because it's not a one-off payment.

The property owner would also continue to pay land tax.

"If you buy a building, it's a one-off payment," Mr Wilson said.

"What they're doing is introducing an annual payment that will go up when the valuation does."

Mr Wilson said he believed it would be another deterrent to investors.

"It's like what has happened with the changes to taxes on residential properties," Mr Wilson said.

"That's having a massive impact on the rental market, with investors exiting because of the added expenses."

Mr Wilson said he believed the property tax would eventually be passed on to tenants, pushing up commercial leases.

He said a growing number of people were already looking at alternatives to investing in property.

"I think people will look to other states - to both live in and for commercial investments," Mr Wilson said.