Tax, planning reform high on election agenda

HOUSING Industry Australia (HIA) has called on the next state government to scrap the Windfall Gains Tax following next month’s election.

HIA claims that the homebuyers would bear the brunt of the new measure to be introduced in July 2023, which it said could cause regional Victorian housing lots to cost up to $53,000 extra.

HIA Victoria executive director Fiona Nield called on the incoming government to repeal the “unfair” tax.

“The Windfall Gains Tax was counter to state government’s aim of growing regions and delivering improved affordability for home buyers,” she said.

“The new Windfall Gains Tax will place further upward pressure on the cost of land for new housing in regional Victoria which continues to be in acute short supply.

“Rising land and housing costs will make it much harder for regional areas to attract and retain residents.

“The Windfall Gains Tax is only a windfall for the Victorian Government. For everyday Victorians, it’s a slowing of the state’s economy and a tax on Victorian jobs at the worst possible time.

“The Windfall Gains Tax is simply the wrong tax at the wrong time for Victoria.”

The call is part of a wider, 10-point agenda that HIA Victoria released ahead of the November 26 poll, which includes planning reforms, appointment of a home building minister and wider property tax reform.

It applauded the government’s $1.1-billion expansion of the Victorian Homebuyer Fund last week – a shared equity scheme through which the state contributes up to 25 per cent of a home’s purchase price.

Master Builders Victoria (MBV) has also tabled its election priorities, which similarly include a dedicated portfolio for building, construction and infrastructure to oversee the industry, better planning delivery and long-term investment to ensure business prosperity as workforce and supply pressures continue to impact the industry.

“Our sector is one of the most important to the state’s economy, and Victoria has invested heavily in building and infrastructure,” MBV CEO Rebecca Casson said.

“Any elected Victorian government will need to continue this effort as our communities work together post-COVID to rebuild Victoria as the preferred state to invest, live and work.

“Our submission draws upon feedback from across our sector and recommends a range of measures that would ensure greater ease of doing business in Victoria.

“These recommendations all have one essential vision – growing and sustaining a more robust building and construction sector and, in turn, the broader Victorian economy.”