A budget for cranes, steamrollers and TBMs
The Property Council has described the State Government’s first budget a responsible investment in Victoria’s future, but warns their new housing taxes will have unforeseen implications for future affordability.
Victorian Executive Director of the Property Council, Jennifer Cunich said this budget will lay the groundwork for future prosperity by putting cranes in the sky, roads on the ground and tunnels in the earth. Unfortunately, the newly proposed tax on housing will undermine affordability, job creation and inbound investment,” said Ms Cunich.
“The Government’s multi-billion investment in transport, education and health infrastructure is great news for Victorians and the business community.
“The flagging of a $2.4 billion investment in level crossing removals and the creation of a new Level Crossing Removal Authority marks steady progress towards eliminating Victoria’s worst level crossings. The Government’s commitment to have 17 construction contracts signed by the end of 2015 is also welcome news.
“The Government’s billion dollar investment in new schools and hospitals will provide a much needed boost to Victoria’s education and healthcare construction specialists. Not only will these investments help reduce the growth areas infrastructure backlog, but they will also create thousands of new jobs in the trade industries.
“Today’s confirmation of a $1.5 billion down payment on the Melbourne Metro Rail Project marks the beginning of new era for Victorian transport. This iconic project will create thousands of jobs and boost the capacity of Greater Melbourne’s urban rail network.
“The Property Council is particularly happy to note the Government’s written commitment to not impose any new taxes on the Victorian community to fund this project going forward (Source: Budget Paper No. 2, pp.46). We will work extremely hard to make sure the Government honours this important community pledge.
“The Government’s ongoing dependency upon a broad range of property taxes also remains a serious concern to the property industry. Stamp duty alone is forecast to grow by over $587 million between 2014-16 representing an unsustainable 13 per cent increase.
“No Government can tax their community to long term prosperity. Consequently, we look forward to working with the Government on addressing the State’s property tax regime through their upcoming review of all policies affecting housing affordability, including taxation, regulatory settings and property concessions.
“The creation of a $ million Stronger Regional Communities Plan to assist local councils with their planning and development approval obligations will also help boost the economy.
“The Property Council looks forward to working with all the key stakeholders in helping drive improved outcomes for the wider community. ”
* TBMs – Tunnel boring machines
Asher Judah, Victorian Deputy Executive Director – 0499 841 715
Don’t miss your opportunity to hear the Victorian Treasurer the Hon. Tim Pallas discuss these budget announcements, investment priorities and the Government’s economic agenda at the Property Council’s Business Breakfast on 12 May. Register your seat now!