Herald Sun - Property sector to feel new tax pinch

JAYITRI SMILES

A STRING of property tax changes to be introduced in the state Budget are a "slap to the sector" as it attempts to recover, Victoria's peak real estate body says.

Real Estate Institute of Victoria senior vice-president Leah Calnan said it was disappointing three new taxes were being put on homeowners, as the market started to show positive signs amid a significant downturn.

Melbourne residents who are land banking" by maintaining a second title for a tennis court or other uses will have to consolidate titles or pay land tax on the second title. It's expected to raise $44 million through fewer than 2000 properties.

Foreign buyers and owners of heritage-listed properties are also facing tax increases. Ms Calnan said there had been 17 tax changes in the property sector in the past three years.

"The government is continuing to tell investors and owners what to do with their properties," Ms Calnan said.

"All additional taxes continue to hurt the property sector, which is an industry that accounts for 47 per cent of the state's income."

Treasurer Tim Pallas has blamed plunging property taxes, notably the loss of stamp duty revenue.

Nick Johnstone, director of Brighton-based Nick Johnstone Real Estate, said the dual-title tax change would lower the value of double blocks on the market.

"Homeowners will be very disappointed because they now have an extra cost, which is just revenue raising," Mr Johnstone said. 

See the original article on Sunday Herald Sun below.