The land tax rates will apply really for high value land, about $1.8 million in value, so were not talking, about somebody whos struggling with a single property that theyre putting into the marketplace, he said.
I would make the point that the property industry was more than happy to accept the tax gifts that the state provided to them, to assist them through a very difficult period.
Property Council executive director Danni Hunter.Credit:Joe Armao
The government will also hike the penalty unit amount by 10 per cent in a move that will see those caught using a mobile phone while drive will be fined $545 and the first level of speeding fines lift to $227.
Danni Hunter, the executive director of the Property Council of Victoria, said the lazy, inefficient taxes would make it less attractive to create new housing which is desperately needed to keep housing prices affordable.
Tax hikes will cheat Victorians out of the economic recovery we are just starting to enjoy, she said.
Victorias competitive advantage will be lost to other Australian cities like Brisbane and Adelaide where state governments are rolling out the red carpet to welcome new investment because they know its good for jobs.
Urban Development Institute of Australia in Victoria chief executive Matthew Kandelaars said the new measures were not targeted at the ultra-rich and would be passed down to hurt Victorian families at every level of the housing market.
The truth is, house prices are high and rising because government taxes, charges and levies are high – a situation made even worse by todays announcement, he said.
This is a classic case of short-term gain causing long-term pain – its a sugar hit that will lead to a bellyache.
In another measure, the Victorian government says it would strip $1 million in land tax concessions from private men-only clubs, saying gender-exclusive establishments have been getting tax breaks meant for non-profit groups while discriminating against half the population.