Peek body welcomes tax review

The Real Estate Institute of Victoria is calling on Federal and State governments to use an upcoming Treasurers’ forum to remove stamp duty.

Stamp duty is essentially a tax that’s paid when some assets, like homes, land and cars are sold and the REIV sees it as a hinderance to market participation for some home buyers.

Recent media reports suggest property tax policy will be a key agenda item at the 22 July State and Federal Treasures forum, which is expected to prioritise housing affordability as it considers other economic drivers.

REIV CEO Quentin Kilian said it’s pleasing to see that after years of advocating for change, property sector tax reform is on the radar of political leaders.

“We welcome a national discussion on a fundamental overhaul of real estate industry taxation, it is, quite frankly, well overdue,” he said.

“For too long here in Victoria, our government has been reliant on stamp duty, a tax which is hugely prohibitive for first homebuyers looking to get into the market, not to mention new investors and even downsizers.

“Each year the Victorian Government derives up to $14 billion in revenue from the property sector, nearly half of all taxation revenue raised, but not much has changed in terms of new support of the sector either by investing in more social housing or contributing to other initiatives that help develop a stable and sustainable property market. This has to change.”

Ahead of the 22 July forum, the REIV will meet with other Victorian property sector bodies to discuss a new and better way forward.

“With this rare opportunity to shape public policy, it’s important the sector comes together to confirm what an alternative tax regime might look like, as we all work together to serve the interests of Victorian homeowners and aspirants,” Mr Kilian said.

“REIV will be representing the interests of more than 2000 real estate businesses and another 7000 individual members, who have long been calling for change.”