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The Victorian budget 2019–20 has been adjusted to deal with the biggest writedown in revenue in Victoria’s history, according to the REIV, due to the 24 per cent drop in sales volumes and ongoing cooling values around the state.
REIV president Robyn Waters said Victoria’s property industry remains the cornerstone of the Victorian budget.
“It continues to contribute 46 per cent of revenue and $10.5 billion in land tax and stamp duty alone in the next financial year,” she said.
“The budget delivers on the government’s bold and ambitious infrastructure investment plan and has addressed many of the priorities outlined in the REIV’s Election Platform and Budget Submission.
“In particular, the REIV welcomes the payroll tax relief for small business and commends the government for adjusting the rates in regional Victoria so that by 2022–23 regional businesses will pay the lowest payroll tax in the nation.”
Ms Waters said the Victorian government will invest $2.6 billion to support jobs, economies and communities in regional Victoria, and an additional $150 million in the next financial year to establish the Victorian Jobs and Investment Fund.
“The REIV is also pleased with the investment in new urban growth corridors and precinct plans which we have consistently advocated for,” Ms Waters said.
“Included in this is $173 million for the Geelong City Deal and an additional $18.8 million for services. We welcome the Fishermen’s Bend Framework which includes homes for 80,000 people and the investment in the innovation and employment clusters in Sunshine, Monash, Dandenong, LaTrobe and Werribee.”
Ms Waters said the government has also committed $50 million for the Growing Suburbs Fund to build and upgrade new community facilities in Melbourne’s 10 rapidly developing interface municipalities.
She said other noteworthy initiatives include the extension of the Better Apartments program to the suburbs, the expansion of solar homes and the 50 per cent discount on land transfer duty for commercial and industrial properties in regional Victoria in four years’ time.
But Ms Waters said the budget is still too heavily reliant on property taxes.
“While we congratulate the Victorian government on many positive initiatives, the reliance on property taxes is of great concern to our industry,” Ms Waters said.
“We appreciate the government has a big infrastructure agenda, but they can’t keep dipping into the same revenue pot to fund their promises.”
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