More property tax reform required for Victoria

Date: 25 May 21

Media Release

The Real Estate Institute of Victoria has welcomed the Liberal Nationals’ announcement today to remove a planned stamp duty tax increase, should it win government at the state’s next election (late 2022).
The Liberal Nationals’ policy position is a reaction to the Victorian Government’s 2021 Budget initiative of double-digit percentage increases to land tax and stamp duty, along with a new tax on property investment and development, all of which will worsen housing affordability, hurt self-funded retirees and see mum and dad investors flee the sector for other investment choices.
REIV President Leah Calnan said: “While it’s encouraging to see some elected representatives taking a more sensible approach to stamp duty, a fundamental restructuring of Victoria’s property tax regime needs to be at the top of any political agenda.
“Unless there’s a significant shift in the thinking and action on property tax, Victoria will become a less desirable place to invest, ultimately harming jobs and the economy.
“The Victorian Government has for too long burdened Victorians with increases to property tax, to the point where today property accounts for more than 40 per cent of government revenue.”
REIV CEO Gil King said his organisation’s door is always open to an informed discussion on taxation for the sector.
“It’s clear to the thousands of people working in residential and commercial property in Victoria that regulators and policy makers would benefit from an increased understanding of the sector and its contribution to the state, both economically and socially.
“We look forward to working with all layers of government and sides of politics to help ensure a thriving industry that serves the long-term interests of Victorian families, businesses and the broader economy.”

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