With recent Australian Bureau of Statistics (ABS) figures showing the number of new home constructions in Victoria has slumped to a decade low, the Real Estate Institute of Victoria (REIV) is again urging the Victorian Government to consider modernising its property taxation strategy.
Despite the Government’s ambition to increase new home builds to 80,000 new homes per year, ABS figures show only 55,653 homes were completed in the past twelve months, 2698 less than the previous year.
The REIV asserted the current property taxes serve as a disincentive to investors and will likely hinder the achievement of the 80,000 new homes per year goal. The Victorian Government must look to implement measures to attract investors to Victoria’s property sector.
Kelly Ryan, CEO REIV says the ABS data is concerning and the REIV is again calling for the Victorian Government to align its housing objectives with its taxation policies.
“We’ve got a great opportunity to build 800,000 new residential properties in the coming decade to ease our housing crisis. However, the latest ABS results highlight the importance of innovative and progressive thinking necessary to achieving this goal.
“We need policies that encourage investment to retain and grow our state’s property sector.”
“The REIV’s 2024-25 Budget Submission recommended the Victorian Government consider reconfiguring the state’s property taxation regime to attract investors such as tax incentives for rental providers supplying long-term rental stock, a comprehensive review of stamp duty, and the retention of negative gearing,” Ms Ryan said.
REIV’s full 2024-25 Budget Submission to the Victorian Government’s consultation can be found here.
Media Contact:
REIV: media@reiv.com.au 03 9205 6607 www.reiv.com.au