The Australian Property Institute, Real Estate Institute of Victoria and the Housing Industry Association in Victoria have come together to call for innovative property tax reform.
The industry bodies are looking to Victoria to lead necessary dialogue on a raft of new initiatives ahead of the State/Territory Treasurers’ Forum, including a complete re-think of the much-maligned stamp duty, as part of an overarching review on property taxation policy.
The group will focus on the impact of taxation reform and will be inviting the Victorian Government to meet in the coming weeks to pave a way forward.
“There is a growing chorus for real and meaningful change of the tax structure which gives us reason to be optimistic about what can be achieved in Victoria,” Australian Property Institute CEO Amelia Hodge (pictured) said.
“As an industry, we look forward to working constructively with state government and making a considered contribution to a future property tax regime.”
REIV CEO Quentin Kilian said initial conversations between property sector leaders had galvanised a strong and united view across the industry.
“Now is the right time to explore all avenues when it comes to rethinking the tax structure affecting Victoria’s real estate market,” Kilian said.
“As an industry, we are determined to seize this opportunity to fundamentally reform outdated and ineffective tax policy so that we can ensure more Victorians own their own home and can invest in property.
“The knowledge and expertise of the sector are at the Victorian Government’s disposal, and we offer support to build a better approach that is in the best interests of aspiring and existing homeowners and investors, as well as businesses and employees of the industry.”
Housing Industry Association Victorian Executive Director Fiona Nield said new homes and land in Victoria were already heavily taxed.
“The combined contribution of property, housing and development taxes is forecast to increase to over 50% of state revenue this financial year,” Nield said.
“If improving housing affordability is a goal for the State Government, reform is needed now.”
“With global and local market forces creating a challenging operating environment for the building industry, we support wholeheartedly any initiatives that can make the dream of home ownership and investment more affordable and accessible for a larger number of more Victorians and, in turn, sustain a strong sector for the long term,” Kilian said.