Proposed CBD high-rise tax to erode housing affordability

Proposed CBD high-rise tax to erode housing affordabilityA $900 per dwelling developer charge for new Hoddle Grid residential towers, proposed by the City of Melbourne has been met with strong opposition from the Property Council of Australia.The proposed tax, which is currently before the Minister for Planning, aims to help fund $26.5 million of public infrastructure needed for 14,300 extra residents over the next fifteen years. If passed, the tax will apply to all new Hoddle Grid multi-apartment applications approved from September 2014.Speaking to The Age, Property Council’s Victorian Executive Director Jennifer Cunich said the tax was a direct hit on housing affordability in the CBD.Housing affordability is a major competitive advantage for Victoria, and the Property Council has long advocated for the assessment of policies which have a cost impact on home buyers. The Property Council is disappointed that there was no consultation with the Council before this was announced.