Media Release: UDIA Victoria calls for “the real lever” to be pulled to deliver 80,000 homes per year – Windfall Gains Tax reform

19 Feb 2025

, Media

UDIA Victoria (UDIA) has called on the Allan Government to come good on their promise to “pull every lever” and address Victoria’s housing crisis.
On the release of UDIA’s Pre-Budget Submission, Chief Executive Officer Linda Allison urged the new Treasurer, Jaclyn Symes to provide the industry with the support it desperately needs to get back on track to deliver more homes.

“The industry is on its knees. Construction costs, interest rates, labour shortages and most importantly crippling taxes will make it impossible to reach the government’s target of building 80,000 new homes per year,” said Ms Allison.

UDIA has called on the Allan Government to undertake a thorough review of the impact of property taxes on the property market, which are a major contributor to increasing house prices, and low consumer confidence. It has particularly singled out Windfall Gains Tax (WGT) as an impediment to housing supply in both established suburbs and regional Victoria.
“Windfall Gains Tax is a blocker, not an enabler of new houses and new communities. It is extraordinarily difficult to calculate and holds up the delivery of much needed homes,” said Ms Allison.

While recognising the challenging fiscal environment for government, UDIA is calling for a review of WGT and other property taxes to get industry closer to projects that are feasible.
“We’re realistic about the government’s budget position. We’re not calling for the abolition of taxes. But what is unrealistic and unreasonable is for the government to double down on a raft of property taxes and expect activity centres and new communities to grow. Without tax reform, the Victorian property market is set to languish, while Queensland, Western Australia and South Australia welcome development and investors with open arms,” said Ms Allison.

UDIA’s prebudget submission calls for ten budget measures including:

  • • Review Windfall Gains Tax including the timing of payment, and introduce a cap for regional Victoria
  • • Reform stamp duty, including rates and corresponding concessions thresholds
  • • Extend the off the plan concessions announced in 2024
  • • Remove the Foreign Purchaser Additional Duty for off the plan new builds.
  • • Appropriate funding of the Victorian Planning Authority to deliver its expanded role
  • • Invest in Melbourne’s bus network, especially in new communities in outer Melbourne
  • • Prioritise funding and delivery of infrastructure that unlocks the delivery of new housing
  • • Address and invest in the chronic skills shortages across the industry
  • • Support regional councils to ensure adequate planning, services and infrastructure delivery
  • • Develop a cohesive plan for the delivery of data centres that aligns with the Housing Statement and Climate Change Strategy.

The submission can be found at https://udiavic.com.au/policy-submissions/.

-ENDS-

Download the media release here.

MEDIA CONTACTS AND INTERVIEW REQUESTS:
Linda Allison | CEO
ceo@udiavic.com.au