The Victorian Government has missed an opportunity to tackle property tax reform, according to a leading industry body.
The Real Estate institute of Victoria (REIV) largely welcomed the big-spending State Budget, but said stamp duty was an outdated tax.
REIV Chief Executive Officer Quentin Kilian said the budget highlighted the strength of the real estate industry, but stressed the sector was due for tax reform.
“Since last year’s budget forecast a further $3.3 billion in property tax revenue has been raised, underlining how significant a contributor the real estate sector is to the state’s coffers,” Mr Kilian said.
“Stamp duty is a tired tax that the Victorian Government continues to prioritise – the state needs a review of its old property tax regime so that all participants – first homebuyers, owner-occupiers, investors and renters – can move forward with confidence.”
Mr Kilian said more needed to be done to remove the barriers to investment in the property sector across Victoria.
“Political, business and community leaders should ensure there’s a focus on keeping Victoria an attractive destination for property investment and housing affordability and access,” he said.
“Anything less puts at risk our strong foundation, which will harm job creation and the economy more broadly.”