Labor’s $21.5 billion in taxes crippling the property sector

Liberal Party Victoria

The Victorian State Budget has reinforced the ongoing vandalism the Labor Government is committing to our state’s property sector and its impact on housing affordability.

As the Property Council of Australia has said: “The Property Council is deeply concerned by the complete absence of any positive action to alleviate the immense fiscal burden on the industry”.

The comments were reinforced by the Urban Development Institute of Australia, who said: “Victoria’s tax regime clips the ticket at every point in the development process. The overall property tax take is up again”.

The State Budget confirms that Labor will rake in $21.5 billion in property taxes – nearly half the State Government’s tax take.

That take includes:

  • $7.8 billion in land tax
  • $10.1 billion in land transfer duties
  • $1.49 billion in COVID debt levy land holdings
  • $1 billion in the fire services property levy
  • $127 million in the congestion levy
  • $221 million in the metropolitan improvement levy
  • $125 million in the windfall gains tax
  • $25 million in the metropolitan planning levy
  • $278 million in the financial accommodation levy
  • $250 million in the growth area infrastructure contribution levy

Shadow Minister for Planning, James Newbury, said: “Labor’s addiction to property tax is vandalising the property sector and causing permanent damage to the industry.

“We know that a third of the cost of a home is made up of taxes and charges and this State Budget will only increase those costs and make it harder for Victorians in need of an affordable roof over their heads and those who are dreaming of buying their first home.

Shadow Treasurer, Brad Rowswell, said: “Over the past decade, Labor has introduced or increased 55 taxes and charges, of which 30 are property-based.

“Labor is spending more, taxing more and with debt hitting a record high, Victorian homeowners and renters are paying the price.”

“Labor’s property taxes have created a housing affordability crisis in Victoria. Victorians are now paying more to rent and buy their homes which is driving people out of this state and putting many vulnerable Victorians at risk.”

/Public Release. View in full here.