REIV Response To Additional Victorian Property Taxes

Statement from Quentin Kilian OAM, REIV CEO
 

This morning’s announcement to extend, the already contentious, vacant property tax to regional Victoria and double the vacant land tax is just another regrettable demonstration of poor property policy development, and shortsightedness from the Victorian Government.

Each time a new tax or a new regulation is introduced, it beats confidence out of one of the state’s most important economic contributors. A sector, already shaken by years of new and raised taxes, but one that still contributes almost half of Victoria’s tax revenue.

Less than a fortnight ago, the government released it’s much vaunted “Housing Statement” and within the space of 2 weeks we already have two new property tax increases announced.

The exodus of rental providers has increased over the past year and with yet again another round of taxation aimed at the property market, there is no doubt that investors will continue to leave Victoria, exacerbating the rental shortage.

The real estate sector – and property participants more broadly – would prefer to see the Government use strategies to incentivise investment in Victoria rather than constant tax increases to dissuade private investors. Consistency and stability are critical to attract the much-needed private investment in the housing sector. This is a message that the REIV has been sending to the Government for some time, but one that has been ignored.

We have read commentary from the Treasurer today that he is seeking to change investor behaviour via this new tax.

We can assure Mr Pallas, and his team of policy makers, that the only behaviour this idea will initiate is for more landowners to sell-up and continue to turn away from Victoria for investment.

It will create more uncertainly in investment at a time when the participants in the sector are crying out for consistency and commonsense and concepts that inject more confidence into real estate regulation.

The REIV is calling on the Victorian Government to engage the sector properly, so together we can work to better policy development that benefits all property participants.

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