MEDIA RELEASE
The REIV has welcomed the Victorian Government’s decision to delay the planned increase to the Emergency Services and Volunteers Fund. Announced in the midyear budget update released on the 5th of November, the REIV acknowledges it as a positive first step toward easing the state’s heavy property tax burden.
The REIV has long advocated for the reduction of land taxes, consistently warning that excessive property taxation acts as a deterrent to critical investment. With Victoria already the most heavily taxed property market in Australia, investors are increasingly withdrawing from the sector, directly reducing housing supply at a time of rapidly growing demand.
The Institute noted the clear correlation between high property taxes, investment withdrawal, and escalating rents. As housing supply contracts, renters face fewer options and rising costs. Recent data from Homes Victoria reflects this trend, with rental bonds held by the RTBA falling from 665,900 in June 2024 to 655,626 in June 2025, an unmistakable indicator of diminishing investment and a shrinking rental pool.
The REIV said the delay to the increase provides welcome breathing room but must be followed by broader reform ahead of the 2025-26 state budget to reverse the sustained decline in housing availability.
REIV CEO Toby Balazs said 2026 represents a critical opportunity for meaningful tax reform. He further highlighted the issue as a pillar of the Institute’s upcoming budget submission and broader advocacy agenda.
“Victoria’s taxation settings are directly contributing to reduced housing supply and rising rents. With the state election approaching in 2026, all parties must commit to a fairer, more sustainable approach to property taxation that encourages, not penalises, investment. This decision is a positive start, but comprehensive reform is urgently needed,” Mr Balazs said.