Another day, another tax; property sector bewildered by blissfully ignorant State Government Opinion editorial by REIV CEO Quentin Kilian published in the Herald Sun on October 5, 2023
YET AGAIN, WE ARE LEFT FLOORED BY THE VICTORIAN GOVERNMENT’S ABILITY TO DISREGARD INDUSTRY ENGAGEMENT, IGNORE EXPERT PROPERTY SECTOR RECOMMENDATIONS AND UNDERMINE THE CONFIDENCE OF ONE THE STATE’S MOST SIGNIFICANT ECONOMIC CONTRIBUTORS. Yesterday, via an announcement to extend the already contentious vacant residential land tax, this Government is showing a determination to destroy the confidence of thousands of mum and dad property investors through increasing regulation and constantly increasing costs. Less than a fortnight ago, the government released it’s much anticipated “Housing Statement” and within two weeks we already have two new property tax increases announced. Each time a new tax or regulation is introduced into the property sector, it sends a message to think twice about investing in the state of Victoria. Unsurprisingly, many have already made a move, with recent external reports indicating one in four Melbourne rental providers have sold their properties over the past 12 months, exacerbating the current rental crisis. This data is supported by our own – a recent survey of REIV members found 90 per cent of real estate agents in Victoria have had an increase in contact from investors looking to recover increased costs because of the Victorian Government’s new and increased taxes on investment properties. The REIV anticipates even more investors will leave Victoria over the next year, with a chorus of concern about a loss of control over assets, courtesy of the increased taxation and ongoing disincentives to invest.
30 | The Estate Agent
