Treasurer delivers a Give and Tax Budget
The Property Council of Australia has welcomed the Victorian Government’s commitment to infrastructure investment and housing affordability, but warns against the Government’s addiction to property tax revenue.
Victorian Executive Director Sally Capp acknowledged the investment in jobs and infrastructure.
“The Government is to be congratulated on investing in key industries that will provide jobs across Melbourne and regional Victoria.
“The Government is in a strong economic position, thanks to the sale of the Port of Melbourne, and strong receipts from property taxes,” said Ms Capp.
However the Property Council cautions against an over reliance on the property sector to fund its ambitious expenditure program.
“This is a give and tax budget. It’s important to invest in the community, but we need to keep growing jobs in Victoria. Increasing the cost of industry doing business decreases the number of new jobs. We call on the Government to be more innovative in the way they fund their community programs, and reduce their reliance on property tax,” said Ms Capp.
The Property Council believes the 2017-2018 Budget is a missed opportunity to deliver meaningful reform of the land tax system. This is hurting mum and dad investors, small businesses and commercial investors.
“Land tax has reached record highs and is long overdue for reform. Bracket creep needs to be addressed and the top rate of 2.25 per cent must be dropped as a matter of fairness for all Victorians.
“The announced change to the valuation cycle will do nothing to alleviate land tax pain,” said Ms Capp.
The Property Council is also concerned at the lack of transparency in spending for infrastructure in new suburbs.
“The Government has collected hundreds of millions of dollars in infrastructure contributions, yet new suburbs are crying out for the infrastructure that established areas take for granted.
“We encourage the Government to spend these funds to boost liveability for families in the growth area neighbourhoods.
“We look forward to working with Government to increase jobs, strengthen community and improve affordability for Victorians,” said Ms Capp.
Sally Capp | M 0439 983 693 | E [email protected]
Mel Slade | M 0407 132 476 | W www.slademedia.com.au