A major Melbourne-based real estate developer has warned that it will stop looking for new construction opportunities until the Victorian government announces details of its ninth land and property tax hike plan.
Sam Tarascio, Managing Director of Salta Properties, one of Australia’s largest developers, told Australians that it would suspend evaluation of future developments, including rezoning, until it fully understood the proposed tax. It was.
“Until we look at the details, we cannot quantify the new costs associated with taxes.” Tarashio saidMention the new storm tax, which pays the government up to 50 percent of land price increases as a result of rezoning.
The Housing Industry Association said it was too early for the government to curb housing demand, and the real estate industry group undertook close tax scrutiny.
Talacio agreed with this sentiment, saying that the sector has played an important role in the state’s economic recovery and that it is not time for a new tax.
“We believe the real estate sector is a partner with the government in leading the recovery from the effects of the pandemic,” he said. “It’s not the time for new taxes. It’s time for the government and the real estate sector to work together.”
Prime Minister Scott Morrison called taxes “quite punished” and said it was the last thing the economy needed today.
“For those who are investing or doing a little better, they basically say,’We take it.’ ” Morrison said Australian Financial Review. “They are benefiting from recovery.”
Acting Prime Minister James Merlino defended the tax increase and called it “appropriate, balanced and absolutely rational.”
“I refuse in honor [the PM’s] comment” Merrino said Reporter. “For those who are making big profits, it is appropriate to have a bigger contribution.”
He said the new premium stamp duty remains lower than the New South Wales top bracket, where owners pay 7%, and Victorians now pay the lowest property tax in the country. I added that.
“If you’re buying a home for $ 2.5 million, the current stamp duty is $ 137,500, up to $ 142,500,” says Merlino. “If you own $ 2 million in land, your land tax will increase by $ 500.”
Victorian treasurer Tim Pallas has labeled tax measures as “progressive” and part of the “difficult and necessary actions” needed to support the state’s economic recovery. ..
“This is in full agreement with the US President’s plan to mobilize new income from those in the best position to support fiscal and economic recovery.” Palas said..
But Danny Hunter, Victorian director of the Australian Real Estate Council, said investors would only move to other states that are cheaper and therefore more profitable.
“Victoria’s competitive advantage is lost in other cities where the government is rolling out the red carpet to welcome new investments, because they know it’s good for the job. ” Hunter said.. “Instead, Victoria is raising lazy and inefficient taxes when we need certainty and more investment in our great states.”