Growth area families face 500m tax hike

Growth area families face $0m tax hikeThe Property Council has expressed alarm at Government plans to increase housing costs by up to $0m in Victoria’s growth areas during the middle of an affordability crisis. Property Council Victorian Executive Director, Sally Capp, said the State Taxation Acts Further Amendment Bill will increase housing costs by up to $3,000 per lot in a community already struggling with declining affordability. Furthermore, the proposed Bill represents a ‘slap in the face’ to industry participants who negotiated the current arrangements in good faith with the former Labor Government. “During the discussions on the GAIC enabling legislation in 2010, all participants had a clear understanding that the GAIC would never apply to land destined for state infrastructure,” said Mrs Capp. This understanding was later upheld in Frontlink Pty Ltd v Commissioner of State Revenue. “The Bill currently before Parliament seeks to overturn the industry-government agreement and legislate around the Frontlink ruling without any consultation with the community or industry stakeholders. “This is unacceptable and the community will see it for what it is – a cash grab which will hurt families in the growth areas. “The State Government is awash with cash. Their record budget surplus, surging land tax revenue and a port lease deal $3 billion dollars greater than forecast means this housing tax grab is not justified. “Instead of developing new ways to tax families in the growth areas, the Government should spend more time spending the taxes they have already collected. “According to the Metropolitan Planning Authority’s 2015-16 Annual Report (p.17), the Government has only spent 4.3 per cent of the taxes collected across the growth areas. * “Some $165 million remains unspent at a time when growth area communities are desperate for more schools, childcare centres and public transport infrastructure. “In the lead up to the 2014 Election, Premier Andrews promised there would be no new taxes; We expect him to keep his word. “Failing that, we are calling on the State Opposition, the Greens and Victoria’s minor political parties to stand up for housing affordability in the growth areas by opposing the Government’s Bill.” * GAIC receipts to 1 July 2015 and for year ended 30 June 2016Media contact: Asher Judah | M 0499 841 715 | E [email protected]