The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
InfrastructureStaff WriterTue 02 May 17

State Budget: VIC Government Sitting On Property Industry’s Tax Money While Nothing New For Housing Affordability

TUD+ MEMBER CONTENT
budget-piece
SHARE
print
Print

Taxes on property now represent approximately 45% of the State Government’s taxation revenue and 15.5% of its total revenue, according to the Victorian Government’s 2017-18 Budget.


The property industry continues to underpin the State’s economy here in Victoria. The question is, what is the State Government doing to re-invest that money back into the housing market?  


“It’s very important for us to look at how all this money is being spent. The Budget includes some good infrastructure projects; in particular the funding for the land acquisition of school sites in growth areas. However there’s still a lot of tax being collected from the property sector that’s not being used,” said Danni Addison, Victorian CEO of the Urban Development Institute of Australia (UDIA).


According to information released with the 2017-18 Budget, less than 4.5% of the money collected under Government’s Growth Areas Infrastructure Contribution (GAIC) scheme has been spent since its introduction in 2010. Of that, approximately 34% has been allocated to the SRO for administration with an additional $226,602 invoiced.


“When it comes to spending the tax revenue being collected through GAIC, the Government is still behind the mark and has not shown any signs of real spending commitment.


“In this year alone, the Government expects to collect $175 million. That’s a big honey pot of money being collected but not being spent in the communities who are footing the bill.


“It’s time the State Government started to take the growth areas seriously by spending the money on key infrastructure items like roads and public transport which will unlock opportunities for the people living in Melbourne’s fastest growing communities,” said Ms Addison.


Government's Homes for Victorians strategy is the only core plank in the 2017-18 Budget to address housing affordability.


“What this tells us is that State Government’s stamp-duty changes for first home buyers and investors will be its primary solution to the housing affordability situation here in Victoria.


“This is a real cause for concern as the Homes for Victorians strategy is extremely flawed.



There are three main unintended consequences that UDIA sees with the stamp duty changes, each associated with skewing the supply/demand balance and therefore negatively impacting upon housing affordability.

 

“The demand for houses in Melbourne’s growth areas and established suburbs will increase but supply will not, which will drive up house prices rather than making them more affordable,” said Ms Addison.

 

“A decline in investors purchasing and leasing out new housing will limit rental supply and push up prices for renters,” said Ms Addison.

 


“If the number of investors purchasing off-the-plan properties decreases, so will the supply of new housing, pushing up costs for home buyers,” said Ms Addison.

 



Want To Know More??
For more information on the future of Housing Affordability in Australia, be sure to check out our National Event Series ‘Let’s Get Affordable - Opportunities For Developers In Responding To Australia's Housing Affordability Crisis'.  The events will be held in May in Brisbane, Sydney and Melbourne. To find out more, click here. 
  

ResidentialAustraliaPolicyPolicy
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
First projects named in a statewide plan to fast-track supply, including thousands of homes in a major growth region…
LATEST
The Adelaide purpose built student accommodation market is about to increase by 1058 beds with the State Commission Assessment Panel supporting two towers in the making.
Student Housing

Highrise Approvals Add 1000-Plus PBSA Beds in Adelaide

Renee McKeown
3 Min
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
2 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/state-budget-vic-government-sitting-property-industrys-tax-money-nothing-new-housing-affordability