MEDIA RELEASE
The Real Estate Institute of Victoria (REIV) has described the 2026-27 Victorian State Budget (Budget) as a failed chance to restore much-needed confidence in Victoria’s rental market through property tax reform.
While welcoming certain positive budgetary aspects, including increased support for social and affordable housing, the REIV said this was a missed opportunity to attract and retain investment in Victoria’s property market.
This comes after the REIV’s 2026-27 Budget submission called for the Victorian Government to freeze property taxes, and provide targeted tax incentives, for rental providers to rebuild investor confidence and address the state’s persistent rental housing supply issues.
It also follows the release of results from an REIV-commissioned independent survey of 1,000 Victorian adults, which included the fact that:
81 per cent of surveyed Victorians, and 83 per cent of renters, would support a revised rental market policy approach that is more favourable to rental providers if it served to boost Victorian rental property supply. 
Toby Balazs, REIV CEO, reiterated the Institute’s longstanding calls for more evenly balanced tax and regulatory settings to ensure a healthier rental market ecosystem and deliver better outcomes for the sector’s key stakeholders.
“Ironically, the relentless 10-year period of rental regulation and property tax increases we have seen play out in Victoria has served to increase complexity and holding costs for rental providers, while failing to materially improve rental affordability and access,” Mr Balazs said.
“We’re pleased that the Government has heeded our member-informed concerns, and refrained from using this budget to add to the already heavy tax and regulatory burden on the state’s rental providers. Having said that, what amounts to another status quo budget for Victoria’s property sector won’t succeed in breathing life into a flat-lining rental market.
“That’s made clear by our recent survey revealing that over half (56 per cent) of Victorian rental providers would either reduce the size of their property portfolio, sell and change their investment strategy, or sell and buy interstate if the current tax and regulatory conditions for rental providers do not change.
“And that’s why we are calling on the government to re-consider our submission’s calls for targeted property tax incentives for rental providers that can help to reverse the decline in investor participation across the state.”
The REIV will continue to engage constructively with the Government in advocating, for property sector settings that meet the needs of both investors and the growing number of Victorian renters seeking stable and affordable housing.
Media Contact: media@reiv.com.au 03 9205 6607 www.reiv.com.au