Victoria’s budget missed an opportunity to reform property tax

The Victorian government has missed an opportunity to tackle property tax reform, according to a leading industry body.

The Real Estate Institute of Victoria (REIV) broadly welcomed the state budget but said the stamp duty was an outdated tax.

REIV chief executive Quentin Kilian said the budget highlighted the strength of the real estate sector, but stressed the sector needed tax reform.

“Since last year’s budget forecast, an additional $3.3 billion in property tax revenue has been raised, highlighting how important the property sector is to contributing to state coffers,” Mr Kilian said. .

“Stamp duty is a tired tax that the Victorian government continues to prioritize – the state needs a review of its old property tax system so that all participants – first-time home buyers, homeowners, investors and tenants – can move forward with confidence.”

Mr Kilian said more needed to be done to remove barriers to investment in the property sector in Victoria.

“Political, business and community leaders should ensure that Victoria remains an attractive destination for property investment and housing affordability and access,” he said.

“Anything less jeopardizes our strong foundation, which will hurt job creation and the economy in general.

Penny D. Jackson