IV's business and jobs tax shock

The Property Council has expressed shock at Infrastructure Victoria’s unimaginative proposal to introduce new business taxes on the Victorian economy and jobs.

Property Council Victorian Executive Director, Sally Capp, said these new taxes will increase house prices, business costs and rents at a time when these are already unaffordable for many Victorians.

“If implemented, these reforms will result in property owners having the same asset taxed six different ways,” said Mrs Capp. Moreover, thousands of property owners will face huge tax increases which will threaten business viability.

“Under the betterment levy idea for Melbourne Metro 2 (p35), a 40,000 sqm office tower with a $21 per sqm rate will face a tax increase of approximately $800,000each year for 30 years. Clearly, this is unsustainable.

“We are calling on Premier Andrews to immediately rule out these new taxes, as he did for road pricing.

“In the lead up to the 2014 Election Premier Andrews took a stand against the introduction of new taxes; we are calling on him to honour his promise now.

“The State Government is flushed with cash. Record budget surpluses, surging land tax revenue and a port lease deal $3 billion dollars greater than forecast means new taxes cannot be justified.

“The property industry currently pays 54 per cent of Victorian taxes despite being 11 per cent of the economy.

“The Property Council welcomes Infrastructure Victoria’s entry into the infrastructure funding debate by introducing multi-decade thinking into the discussion. However, we encourage them to place a greater emphasis on equity for all stakeholders when proposing new funding methods.

“Stimulating economic growth continues to be the best source of infrastructure funding because it drives tax revenue.

“The proposals contained within Infrastructure Victoria’s Paper will discourage business investment, undermine housing affordability, threaten job creation and subdue future tax revenue.

“We encourage all stakeholders to examine the infrastructure funding proposals outlined in the Property Council’s Finding $50B Report which enjoys widespread industry support.”

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