UDIA Victoria Media Release
Today’s announcement to slug Victorian homeowners with more property taxes is short-sighted and will strangle the State’s attractiveness as a place to invest and do business, threatening jobs and sending up house prices.
Matthew Kandelaars, Chief Executive of the Urban Development Institute of Australia, Victorian Division (UDIA Victoria) lamented that the industry has been the Government’s cash cow for decades and the latest tax increases show a lack of regard for an industry that employs 300,000 Victorians, generates billions in economic output and puts thousands of Victorians into homes each year.
“With property taxes representing nearly 50 cents in every dollar of State Government revenue, we’d hoped that the days of the Government turning out the pockets of homeowners were over,” Mr Kandelaars said.
The urban development industry has helped keep Victoria open for business through the coronavirus pandemic, keeping Victorians in jobs and homes. The delivery of new housing is needed to support our economic recovery, but today’s announcement will do the opposite.
Research has shown that Government charges amount to up to 34 per cent of a Victorian homebuyer’s price.
“The truth is, house prices are high and rising because government taxes, charges and levies are high – a situation made even worse by today’s announcement.”
Increases to Land Tax and Stamp Duty will punish existing homeowners and those looking to move home, while taxes on risk taking and investment will make Victoria a less attractive place to invest and do business.
“These increases show a fundamental lack of understanding. Where they don’t hit homebuyers directly, they will need to be passed through and will only increase the cost of housing. These are not measures targeted at the ultra-rich jet setting pack – they will hurt Victorian families at every level of the housing market”, said Mr Kandelaars.
“This is the classic case of short-term gain causing long-term pain – it’s is a sugar hit that will lead to a bellyache.”
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Matthew Kandelaars: Chief Executive Officer, UDIA Victoria
M: 0416 443 555
Hyatt Nidam: Engagement and Communications Manager, UDIA Victoria
M: 0478 415 105