MEDIA RELEASE
The Real Estate Institute of Victoria (REIV) commissioned independent research (1,000 Victorian adults) and received compelling results showing strong support from the Victorian community for property tax reform. The findings highlight growing concerns from Victorians that current tax policies are placing insurmountable pressure on property investors and constraining rental supply, while also creating a barrier for renters to break into the property market.
Support for broader reform was overwhelmingly clear with more than four in five Victorians (81%) agreeing current tax and regulatory settings are discouraging investment in the rental market. 83% of renters surveyed shared the same sentiment.
Of note, investor sentiment pointed to potential supply impacts if the status quo on tax and regulatory settings persist. More than half of Victorian rental providers (58%) say they do not feel adequately supported by the Government, while one in two (56%) would consider selling, reducing their portfolio, or shifting investment interstate if current settings remain unchanged.
Stamp duty was also highlighted as a barrier to home ownership for renters with 86% of renters claiming they would be more likely to buy a home if stamp duty – the Government’s ‘go to tax’ - was removed.
REIV has long advocated for tax reform to make investment in Victorian property more attractive, and Victorian rental providers agreed. One in two rental providers (58%) said they would increase investment if targeted incentives were introduced, while just under half (44%) would respond positively to a freeze on property-based taxes.
The results send a pretty strong message ahead of the State Budget: without policy recalibration, Victoria’s housing challenges are likely to intensify.
Supporting survey data
Four in five (81%) Victorians agree the current Victorian rental market tax and regulatory settings are serving to discourage investment.
Five in six renters (86%) agree they’d be more likely to buy a home if stamp duty was removed.
Over half (56%) 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 tax reforms and policies remain as they are. (Nearly a third 27% would sell and change their investment strategy)
Over half of Victorian rental providers (58%) would increase their investment if a policy offered targeted tax incentives. Just under half (44%) would increase investment if tax and regulatory incentives were frozen.
More than half of Victorian rental providers (58%) don’t feel adequately supported by the Government. Those in regional markets more likely to not feel adequately supported. (70% vs Melbourne 56%)
.
Media Enquiries: media@reiv.com.au 03 9205 6607