The Victorian government could slap millions of residents with a new property tax as it struggles to pay for its social and affordable housing scheme.
Daniel Andrews’ government is reportedly looking for new ways to boost its bottom line after a similar tax proposed last year was scrapped following a backlash.
This is yet another blow for Victorians, with residents already paying the highest tax in the country, according to data released by the Australian Bureau of Statistics.
The Andrews government is set to introduce property sector reforms this year, which could include hitting residents with a new tax to pay for its stalled social housing initiative
An average resident paid $5,638 in 2021-22 to local and state governments, compared to $5,537 paid by NSW residents and $3,952 by Queenslanders.
Andrews’ government and councils collected an additional $7.3 billion in property taxes, stamp duties, tariffs and other charges in the last financial year alone.
Mr Andrews confirmed last week that he was considering a series of construction industry reforms which could include a new tax, with councils being stripped of their approval powers for major developments and requiring a party new constructions are social housing.
Property Council of Australia Victorian executive director Cath Evans said the government should be careful about any new levies.
‘The Property Council has made our position clear – the Victorian tax system needs a review to fully consider the impact of taxes on housing supply and affordability,’ she told the Herald. Sun.
“Any changes to the state’s fiscal settings must be aimed at stimulating economic growth and providing new housing for an increasingly tight market.
Last year, the Andrews government proposed an $800 million social housing tax that would have imposed a 1.75% tax on developers building a project of three or more units.
But after backlash from the real estate industry, which said it would add $20,000 to the median cost of a home in the state, Mr Andrews scrapped the tax within two weeks.
Despite the push for a social housing piggy bank, data from the Department for Families, Equity and Housing has revealed affordable housing in Victoria has grown by just 74 units in the past four years under the government. Andrews.
The DFFH report says 86,887 public housing units existed in the state as of June 30, 2022, up from 86,813 in June 2018.
Over the same period, waiting lists for affordable housing have quadrupled.
Victorians already pay more than any other state in taxes with an average of $5,638 per person going to local and state governments in 2021-22
Victorian Shadow Treasurer Brad Rowswell claimed Victorians were suffering the effects of the Andrews government’s financial mismanagement.
“It will only get worse when the Andrews government releases what promises to be an awful state budget next month,” Mr Rowswell said.
“According to the Andrews government’s own figures, their tax levies will increase by 14% over the next three years, with land levies expected to increase by 21% over the same period.”
He said total state taxes are expected to reach $35.6 billion by 2025 to 2026, up $17.3 billion from the 2014 figure.
“And young Victorians continue to struggle to enter the property market thanks to some of the highest stamp duty rates in the country under the Andrews government,” he added.
“As long as the Andrews government is in power, every Victorian will continue to pay more and receive less because they simply cannot manage their money,” he said.
Victoria’s budget will be presented on May 23.