MEDIA RELEASE
The Real Estate Institute of Victoria (REIV) is calling on Victorian election candidates to review property tax settings to reduce property holding costs, restore business confidence and improve Victoria’s competitiveness as a place to invest.
The Business Council of Australia’s latest report, BCA 2026 Regulations Rumble, reinforces what many have long recognised. There remains an urgent need for policy reform to strengthen Victoria’s competitiveness. Property taxation remains a key barrier to business confidence and investment, underscoring the need for a more competitive tax environment to support Victoria’s property sector.
Changes introduced from 2024 reduced the land tax-free threshold to $50,000, introduced the COVID Debt Levy and increased land tax liabilities across taxable bands, adding to the holding costs faced by individuals and businesses investing property.
According to REIV CEO Toby Balazs, these higher ongoing costs are making Victoria less competitive for property investment, reducing the incentive for businesses to reinvest and making it harder to attract new capital into the state’s commercial and industrial property sector.
“Businesses need certainty that Victoria remains a competitive place to invest, operate and expand. Land tax settings that significantly increase ongoing property holding costs risk working against that objective.
“Higher holding costs reduce the capacity for businesses to invest, weaken the case for new capital and make Victoria less competitive with other states.”
Victoria’s general land tax-free threshold of $50,000 also compares with $600,000 in Queensland and $1.075 million in New South Wales, highlighting the significantly different tax settings facing property owners across jurisdictions.
The REIV is calling for all candidates to commit to a comprehensive review of land tax settings and establish a fairer, more sustainable framework that supports business confidence, investment and economic growth.