A new report released today by the independent Victorian Parliamentary Budget Office (PBO) has confirmed Victorians are paying the highest property taxes in the nation.
Under the Andrews Government, Victorians will pay a total of $2,120 in property taxes per person across 2023-24, compared with $1,646 in New South Wales and $1,343 in Queensland.
The PBO analysis also reveals the full impact of the Andrews Government’s new Rent Tax and COVID Debt Levy, which will drive a spike in total land tax revenue per person from $783 in 2022-23 to $1,051 in 2023-24 – an increase of more than 34 per cent in just 12 months.
Furthermore, Victoria will continue to experience an increase in property taxes as a share of all State Government revenue, with the PBO stating that “Victoria is expected to rely more heavily on property taxes to generate revenue than any other state.”
Today’s report follows recent confirmation that Victorian rents are increasing faster than any other state and a previous PBO report which found Victorians are paying the nation’s highest total state taxes.
Leader of the Opposition, John Pesutto, said the Andrews Government was continuing to punish renters and first home buyers for their own waste and mismanagement.
“Victorians are being made to pay the highest taxes in the nation because of the waste and mismanagement of the Andrews Government,” Mr Pesutto said.
“Every extra dollar in property taxes adds more pressure on rents and property prices at a time Victorians are already struggling to make ends meet.”
“With Victoria’s rents already rising at the fastest rate in the nation, higher property taxes will only make a bad situation worse and push secure, affordable housing for many Victorians even further out of reach.”
Shadow Minister for Home Ownership and Housing Affordability, Jess Wilson, said renters and first home buyers shouldn’t be the ones to pay for the incompetence of the Andrews Government.
“This independent analysis confirms what every Victorian struggling to pay rent or saving to buy a home already knows; Labor’s Rent Tax and higher land taxes are making homes less affordable across the state,” Ms Wilson said.
“Finding an affordable and secure place to call home is already challenging enough, yet instead of easing pressure, the Andrews Government’s property taxes are punishing those who can least afford it.
“We have a very serious demand and supply housing problem in Victoria, and the Andrews Government’s answer to this was to expand and increase property taxes in this year’s Budget – only exacerbating the problem and making it harder for Victorians to find a place to call home.
“With state net debt, interest repayments and cost blowouts all continuing to escalate, Victoria needs a government with financial discipline, not one that uses higher taxes to pay for its own mistakes.”
