Victoria’s pre-election rainmaker
Seven months out and the Victorian state 2018 election race is on. The Property Council is pushing for policies that support tax, planning and supply with all parties ahead of the 24 November election.
In March, the Australian Bureau of Statistics confirmed that, with a growth rate of 2.4 per cent, Victoria’s population is expanding faster than any other state. A record 147,000 people moved to Victoria in the last 12 months – and 130,000 of those chose Melbourne as their home.
Strong economic growth, a housing boom and a record $30 billion government investment in transport infrastructure projects provide a solid platform for the property industry to thrive.
But Victoria’s economic success comes with growing pains for Melbourne. As policy makers struggle to keep up with the pace of growth, congestion and red tape threaten Melbourne’s liveability status.
Treasurer Tim Pallas’ fourth budget, set to be delivered on 1 May, is the next milestone. Property Council members can engage directly with the Treasurer when he delivers the first post-budget property address to the Property Council’s business lunch on 4 May.
“This Budget is the pre-election rainmaker,” says the Property Council’s interim executive director Michael Zorbas.
“We expect it to address almost all of our 11-point budget plan. We will be looking closely for much needed planning and supply measures.”
Underpinning the Property Council’s budget recommendations are three principles: productivity, affordability and liveability. Among the key recommendations are:
- Commit funding to the Melbourne Airport rail link
- Invest in a state-wide freight strategy
- Improve the Victorian planning system through a “digital revolution”
- Remove impediments to increase density in middle ring suburbs
- Address uncompetitive aspects of the state tax regime.
“Governments love property taxes and in Victoria they are 45 per cent of state revenue. We’ve made it plain that adding to this burden would be unacceptable.
“We don’t expect to see build-to-rent in the budget but we are advocating for action in the next few months. Any scheme will need further industry engagement to ensure it is attractive to institutional investment. Build-to-rent, proven overseas, will assist greatly with supply and give tenants improved security of tenure.”
Beyond the 1 May budget, Zorbas says constant dialogue with both government and opposition has laid strong groundwork for our pre-election priorities.
“Victoria needs certainty in decision-making, to compete for foreign investment, often the seed-factor for banking support for new office and housing supply, and to further adjust planning and supply to meet growing demand.”
“Our Division Council, led by Roger Teale and based on the terrific work of Sally Capp and our expert committees, is finalising a platform that will help drive prosperity in Victoria. In July we’ll be launching our five steps to the productivity, affordability and liveability that the city and state so richly deserve,” says Zorbas.
How will the 2018 state budget effect your business? Don’t miss your chance to ask the Victorian Treasurer Tim Pallas as he showcases his fourth budget to the industry. Book now.