UDIA wants tax relief for homebuyers
The Urban Development Institute of Australia’s Victorian division (UDIA Victoria) has applauded the state government for its decision not to introduce or increase any taxes on Victorian homebuyers
However, the institute says inflation is at record highs and cost of living pressures are hurting every Victorian family, and reforms to the planning system are the best way to boost Victoria’s economy.
Responding to last week’s 2022-23 State Budget, UDIA Victoria chief executive officer Matthew Kandelaars noted it was a relief for Victorian families that the state government paused its increasing tax take – which amounts to 52 per cent of the state’s tax revenue this year.
“Victorian homebuyers already pay up to $420,000 on an average $1 million home in taxes, fees and charges, while this year property taxes will contribute 52 per cent of the state’s tax revenue,” he said.
UDIA Victoria had called on this budget to be a homebuyer’s budget, with measures to ease housing affordability pressures and put Victorians families within reach of their home ownership dreams.
“With a clear link between development taxes and home prices, we called for a commitment to no new or increased taxes on homebuyers.
We’re pleased that the government has listened, only weeks after uproar from first homebuyers forced the government to scrap a tax that would have increased the cost of a new home by $20,000,” Mr Kandelaars said.
“Now the government needs to make a clear and unambiguous promise that this tax won’t reappear if it’s re-elected in November – in any way, shape or form.”
UDIA Victoria is also calling on the state government to reconsider its position on reforms to Victoria’s planning system.
“By the government’s own admission, there are billions of dollars worth of inefficiencies in the state-sponsored planning system that will help to accelerate the Victorian economy out of the pandemic. Now is the time to act – planning system reform is a cost-free way to boost jobs and boost Victoria’s economic growth,” Mr Kandelaars said.