As Victoria tackles its ambitious construction targets driven by an acute housing shortage, property developers are sounding the alarm about a tax regime they say is throttling investment and sending capital fleeing across state borders.

With multiple layers of property taxes, surcharges and levies creating a heavy burden, industry experts warn the state is becoming “uninvestable” just when new housing is most needed.

“Governments think the taxes applied to property will create additional revenue, but what it’s doing is driving people away and driving investment away from Melbourne, which is counter-intuitive,” Molti managing director Ben Teague tells The Urban Developer.