Property industry is cornerstone of state budget
Growing Regional Victoria and reducing payroll tax were major priorities outlined in the Real Estate Institute of Victoria’s (REIV) Budget submission and we are pleased that the state government has made significant commitments in these areas.
Victoria’s property industry remains the cornerstone of the Victorian Budget, continuing to contribute 46 per cent of revenue and $10.5 billion in land tax and stamp duty alone in the next financial year.
There is no doubt that Regional Victoria was the big winner in the Victorian Budget, handed down on 27 May, and there is lots to like from a property industry perspective.
In particular, the REIV welcomes the payroll tax relief for small business and commends the government for adjusting the rates in Regional Victoria so that by 2022/23 regional businesses will pay the lowest payroll tax in the nation. We also welcome the $2.5m support for mentoring for small business.
The Victorian government will invest $2.6b to support jobs, economies and communities in Regional Victoria and an additional $150m in the next financial year to establish the Victorian Jobs and Investment Fund. Included in this is $173m for the Geelong City Deal and an additional $18.8m for services.
The REIV also advocated strongly for investment in skills and training and commends the Government for its historic expenditure in the sector as we continue to work with the relevant bodies to ensure the ongoing professionalism and upskilling of our industry. The government has reported a 116 per cent increase in regional TAFE enrolments which is positive news for our country areas.
Other noteworthy initiatives include the expansion of Solar Homes and the 50 per cent discount on land transfer duty for commercial and industrial properties in Regional Victoria in four years’ time.
While we congratulate the Victorian government on many positive initiatives, the reliance on property taxes is of great concern to our industry and we will continue to advocate for a more equitable taxation regime.