Budget misses the mark on housing

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Tuesday 7 May, 2024


Budget misses the mark on housing

While no new taxes levied on property in Victoria is a good thing, the Property Council is deeply concerned by the complete absence any positive action to alleviate the immense fiscal burden on the industry in today’s State Budget.

The Allan Government’s continuation of the uncompetitive tax status quo will only preserve the hostile investment environment in Victoria that is driving capital to find – and very literally build – a home somewhere else.

“The fundamental drivers of the housing affordability crisis are a critical lack of new supply and increasingly intense demand driven by population growth. This is understood by all stake holders – except obviously the Allan Government – underscored by the complete absence of budget measures to alleviate the tax burden on the property industry,” said Cath Evans, Victorian Executive Director of the Property Council.

“While the $700 million extension for the Victorian Homebuyer Fund will assist some Victorians into a home – it will not result in more homes being built and is in reality only tinkering around the edges of the real problem – a critical lack of new housing supply.

“Efforts by the Government to put the brakes on the State’s massive public infrastructure spend are also welcome, but with the slow down to be drawn out over a number of years, the benefits will take some time to reach the industry.

“There are long term workforce challenges that need to be addressed so that the industry has the capacity to build the homes our State desperately needs. We welcome the Government’s measures in the today’s State Budget to invest in attempting to address the critical labour and skills shortage plaguing the market.

“We recognise the extent of the challenges the State is dealing with and it is critical that the Government continues the dialogue with the property industry to work through the short and long term issues together,” said Ms Evans.


Media contact: Dominic Raff | 0478 819 525 | [email protected]