A proposal to calculate land tax rates based on investors' holdings across the country has been shelved by the Queensland Government.
Under the proposal, the value of an investor's properties Australia-wide would be taken into account to calculate land tax rates paid according to Queensland's thresholds.
That rate is then applied to properties in Queensland.
The government confirmed the changes had been shelved on Friday after the tax change was criticised by other premiers and the state opposition.
Premier Annastacia Palaszczuk was expected to take the proposal to National Cabinet but said discussions were held between state treasurers.
"It...came out of the Treasurers' meeting. There were discussions held at that forum and it relies on the goodwill of other states," she said on Friday.
Some of the most pointed criticism came from NSW Premier Dominic Perrottet who earlier pledged to block attempts by Queensland to access relevant NSW data.
"Contrary to what the public report, Dominic and I get along well even though we win the State of Origin," Ms Palaszczuk said,
Queensland Deputy Premier Steven Miles said the government didn't know other jurisdictions would be unwilling to assist when the decision was made.
"I think the principle of that measure made sense when the decisions were made, but since then we've had these positions taken by other states and territories that they won't assist to close that loophole," he said on Friday.
Treasurer Cameron Dick had defended the changes, stating those who buy properties across jurisdictions and avoid paying land tax are getting away with it.
"We don't think that's fair on people who invest in our state. That's why we've closed this land tax loophole and that's very important. We want our land tax system in Queensland to be fairer," he said previously.
Liberal National treasury spokesman David Janetzki described the change of heart as an "economic embarrassment of epic proportions".
The opposition has characterised the changes as a "renters' tax" on the assumption costs would be passed on.
"Despite this embarrassing backdown the fact remains the confidence of renters and investors has been rocked and Queenslanders no longer trust the Palaszczuk Government," he said.
The shelving of the plan should prompt the Queensland Government to review another controversial tax, the Queensland Resources Council said.
"Earlier this year, and almost overnight, the State Government increased Queensland's top coal royalty tax rate from 15 per cent to 40 per cent, which is 43 per cent higher than the next nearest rate of 28 per cent, and nearly four times higher than the average highest rate globally," chief executive Ian Macfarlane said.
The request was quickly dismissed by Mr Miles.
