Homebuyers dodge affordability bullet

The Property Council and the UDIA have secured a major win for homebuilders by successfully negotiating exemptions from the Government’s new international investor taxes.

Over the past three weeks, we have held multiple high level meetings with the Treasurer’s Office seeking changes to their new non-resident duty and absentee owner surcharges via revisions to the Treasurer’s new tax Guidelines.

The revised Guidelines will provide clear direction on how the new taxes will be applied, what discretion the Treasurer has for enacting his responsibilities and what development activity and international ownership arrangements will trigger tax exemptions.

The exemptions will ensure that Australian property businesses with full or partial international ownership will not have to pay the new taxes. Importantly, the Guidelines will protect those businesses which positively contribute toward Victoria’s future affordable housing stock, regardless of ownership structures.

The changes the Property Council have secured will save aspiring homeowners thousands of dollars by exempting property businesses from the Government’s new international investor taxes – A key Property Council win!

Importantly, these Guidelines will also now have a higher degree of legal authority as they will be tabled in Parliament and displayed on the State Revenue Office website tomorrow – Another key Property Council win!

Our preference would have been to have the Guidelines referenced in the Bill, however, we are pleased to have secured many other important changes which will avoid a number of unintended consequences.

Prior to these changes, Australian homebuyers in the growth areas were facing an indirect tax bill of between $2,000-$6,000 per lot.

This is a great win for the industry and a clear sign that the Government knows how to effectively engage with the business community. We thank the State Government for their willingness to listen, engage and respond.

A link to the Guidelines will be circulated tomorrow after they are tabled in Parliament.

Members who have any queries regarding how these new taxes will operate should contact the Property Council Office on 96 8300 or the SRO via www.sro.vic.gov.au.