Property tax hike inflames industry

The Property Council has slammed the State Government’s decision to hike the Fire Services Property Levy on outer suburban and country property owners (CFA region).

The Property Council's Victorian Acting Executive Director, Asher Judah, said this is a fundamental breach of the State Government’s election promise to not increase taxes on the Victorian public.

"The Government has increased the variable rate for the FSPL on industrial property by 11 per cent and commercial property by six per cent.

"The variable rate for the FSPL on vacant land will rise by a whopping 240 per cent.

"These increases will hurt property owners, tenants, shopping centres and manufacturers. They will also undermine job creation in the outer suburbs by making holding costs more expensive.

"Disappointingly, fixed rates for the FSPL have also increased marginally for both residential and non-residential property.

"The Government is forecasting a $3 billion surplus in 2016-17. There is simply no justification for these tax increases.

"The Property Council has welcomed the reduction in rates across multiple MFB categories.

"These reductions reflect a sensible response to bracket creep and will ease the burden on property owners in the inner and middle ring suburbs.

"There is now a significant FSPL tax differential between property owners in the MFB and the CFA zones. This distortion will undermine investment in the outer suburbs."

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Media contact: Asher Judah | M 0499 841 715 | E ajudah@propertycouncil.com.au