Uncertainty hangs in Levy, a new home in Victoria

Victoria, Australia Newly proposed housing tax After the Andrews government said it had rejected its promise to help the real estate sector reform the industry.

On February 18, the provincial government announced a new social and affordable housing contribution. It will impose a 1.75% tax on all three or more new homes from July 2024, raising funds to build thousands of social and affordable homes.

Less than 30% of housing planning permits are taxed, and the government says it can raise more than $ 800 million annually to build about 1,700 new social and affordable homes. increase.

However, many major industry groups immediately raised concerns that buyers were struck by the cost of levies and needed to move young people further away from the housing market.

Prime Minister Daniel Andrews said he had discussed the surcharge between his government and members of the real estate sector as part of a broader reform package to speed up the approval of the plan.

He said the sector would earn “huge profits” by reducing bureaucracy and agreed to contribute to some wind and rain to provide more social and affordable housing.

Nonetheless, Andrews argued that industry groups, including the Australian Property Council, withdrew their promise to support levies after reaching an agreement with the government.

“It is no exaggeration to say that the future of this bill is very, very uncertain,” he told reporters on February 23.

“If you don’t want to help developers share their profits with people who need more affordable homes, I’m not in the business of making super profits for them. “

Epoch Times Photo
Flemington’s public housing complex will be found in Melbourne, Australia on August 26, 2020. (RobertCianflone ​​/ Getty Images)

The property council argued against Andrew’s criticism, but promised to maintain cooperation with the government.

“This is the tenth new tax introduced by this government and the second in the last decade,” the organization said in a statement to the AAP.

“All of us are concerned about the spillover effect of the new tax on affordable housing.”

The Victorian government has not yet submitted the bill to the legislature, and the prime minister said the bill would not move forward without industry consensus and would push the matter back to developers.

“This is the end of the development community,” he said.

David Davis, the opposition’s shadow finance minister, said the government misjudged the real estate sector’s response to the proposed tax and questioned Andrews’ proposal that the industry had agreed to the tax.

“It’s perfect and totally garbage. I talked to everyone in the field … and no one thought this was a good idea,” he said.

“It came from blue as a perfect bolt.”

The state government later canceled a planned briefing with Shadow Cabinet members on housing taxes and other measures contained in the bill.

Samantha Ratnam, leader of Greens, Victoria, announced her party’s support for the bill, calling the claim to raise home prices in the real estate sector “Furphy.”

“Every time there are reforms to make more affordable homes, we see the development community crying poorly,” she said.

The Greens also submitted a legislative bill in the Victorian Legislative on February 23, forcing the government to pass a new legislation to end the state’s homelessness by 2030.

Alfred buoy


Alfred Bui is a Melbourne-based Australian reporter with a focus on local and business news. He is a former small business owner and holds two master’s degrees in business and business law. Contact him at [email protected]

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