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Three leading property organisations have banded together to seek reform to the state’s property tax system.
The collective stance comes from the Real Estate Institute of Victoria (REIV), Australian Property Institute and the Housing Industry Association (Victoria), which have considered that today’s (22 July) State/Territory Treasurers’ Forum presents the “perfect platform for change”.
The coalition has expressed hope that Victoria can lead necessary dialogue on a raft of new initiatives, “including a complete re-think of the much-maligned stamp duty” as part of an overarching review on property taxation policy.
The focus of the group’s work will be on the impact that taxation reform could have for all participants.
According to REIV chief executive Quentin Kilian, initial conversations between the property sector leaders have galvanised “a strong and united view” from the industry.
“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,” he said.
He said that “now is the right time to explore all avenues when it comes to rethinking the tax structure affecting Victoria’s real estate market”.
“As an industry, we are determined to seize this opportunity to fundamentally reform outdated and ineffective tax policy so that we can ensure more Victorians own their own home and can invest in property,” he said.
Australian Property Institute chief executive Amelia Hodge has acknowledged “a growing chorus for real and meaningful change of the tax structure”.
She expressed that this sentiment gives the organisations “reason to be optimistic about what can be achieved in Victoria”.
Housing Industry Association Victorian executive director Fiona Nield has also weighed in, noting that “if improving housing affordability is a goal for the state government, reform is needed now”.
“New homes and land in Victoria are already heavily taxed. The combined contribution of property, housing and development taxes is forecast to increase to over 50 per cent of state revenue this financial year,” Ms Nield said.
Advising that the knowledge and expertise of the property sector are at the Victorian government’s disposal, the coalition revealed that it would be inviting the Victorian government to meet in the coming weeks.
Ms Hodge said that the industry looks forward to working constructively with the state government to make “a considered contribution to a future property tax regime”.
“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,” Mr Kilian shared.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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