MEDIA RELEASE
The Real Estate Institute of Victoria (REIV) is urging the Victorian Government to use the 2026–27 State Budget to critically evaluate property tax policy, warning that sustained taxation and regulatory pressures are undermining confidence and contributing to the state’s persistent housing challenges.
The call comes after a decade of tax and regulatory reform, largely borne by rental providers, has failed to materially improve housing supply with the rental market under significant strain.
In its 2026–27 Budget submission, informed by member feedback, the REIV seeks to draw a line in the sand with a proposal to freeze new or increased property taxes to provide stability and certainty for Victorian investors.
The submission also proposes three targeted, low-cost tax incentives to rebuild investor confidence and strengthen long term housing supply in Victoria:
1. Drive medium-density build to rent housing through targeted incentives.
2. Encourage long-term leases with land tax concessions.
3. Retain long-term rental stock by reducing tax burden.
REIV CEO Toby Balazs said, targeted tax reform that incentivises – rather than penalises - investment would help reverse the decline in investor participation across the state.
“The data shows Victoria imposes one of the heaviest property tax burdens in the country, and industry feedback now ranks Victoria as the least accommodating state for property investors.
“Expanding property taxes are eroding affordability, with land tax payable on a median-priced house or unit now twice what it was in 2020, even though median property values have remained largely unchanged.
“Our incentive-based tax reforms including medium-density build-to-rent land tax concessions, rebates for longer leases, and long-term rental incentives, would help make investment in Victora far more attractive” he said.
Mr Balazs said the upcoming Budget presents a critical opportunity to recalibrate tax policy settings that have placed mounting pressure on investors and, in turn, constrained housing availability.
“If we’re serious about addressing Victoria’s rental crisis and delivering the Government’s Housing Statement ambition of 800,000 new homes, we must rebalance the tax and regulatory settings that are currently driving investment away,” he said.
The REIV will continue working closely with the Victorian Government to deliver practical, industry-informed recommendations that serve to improve outcomes for investors, renters and the broader Victorian community.