UDIA Victoria Media Release
The Victorian division of the Urban Development Institute of Australia (UDIA Victoria) continue to roundly oppose the Andrews Government’s plans to extend the tax on development agreements in a bid to recoup their recent losses in stamp duty revenue.
“Industry understands that the Andrews Government is trying to recover the costs of the $5.2 billion they had to write down in stamp duty revenue. However, hitting an industry already overburdened with government taxes and charges is simply not the way to do it,” said UDIA Victoria CEO, Danni Hunter.
“The changes to economic entitlements are yet another government cost burden that will ultimately land on homebuyers,” she said.
The greenfield residential market has long provided an entry point for first home buyers. The impacts of changing the goalposts around economic entitlements will undoubtedly leave first home buyers worse off.
“The greenfield residential market is critical in housing Victoria’s population growth. The changes proposed by the Andrews Government will fundamentally impact on the way this market operates, to the ultimate detriment of housing affordability.”
Tighter lending standards, changes to foreign purchasing taxes and increasing timeframes for service delivery have all put the residential development market under significant pressure. Changing the way economic entitlements function will only further exacerbate these problems.
Victoria is already facing a decline in delivery of new housing to market, including a forecast 92% fall in building approvals for dwellings in central Melbourne (UDIA Victoria’s Residential Development Index data), and a 62% decline new residential lot sales for the year (Research 4 data).
“We strongly caution the State Government against making significant policy changes to tax settings affecting the residential sector. They are likely to result in further declines in the delivery of residential land and dwellings to market, as well as housing affordability.”
“UDIA Victoria have been participating in serious discussions with the Victorian Government on this matter. If the Treasurer refuses to back down from this disastrous tax, industry will pursue a Bill amendment process.”
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Engagement and Communications Manager, UDIA Victoria
T: 03 9832 9600
M: 0478 415 105