Wednesday, 31 May 2023

Property tax

Brad ROWSWELL (Sandringham) (14:22): My question is to the Treasurer. Alex and Christine from Rosedale lost their jobs during COVID and did not receive any taxpayer support to get by. They have a small holiday home, which they have never leased out for income. Why should Alex and Christine pay higher taxes on a property they earn no income from because Labor has sent Victoria broke?

Tim PALLAS (Werribee – Treasurer, Minister for Industrial Relations, Minister for Trade and Investment) (14:23): I thank the member for his question, and I would make the point that the Victorian government – the Labor government – is the only government in the nation with a COVID debt repayment plan. In doing so we are making sure that future generations are not burdened with the costs that we put in place to support this community and businesses all the way through. There was $14 billion worth of support to businesses but for the entire community that level of support was dwarfed by the $31.5 billion that we put into communities and put into the interests and the wellbeing of the Victorian economy to keep families whole and keep the wellbeing of the community protected, so that they could take the opportunity to bounce back when it presented. That is why our economy is running 25 per cent above the nation’s economy. That is why we have been the job-creation engine of the nation with nearly 440,000 jobs, which is 109,000 more jobs than the state of New South Wales since September 2020.

James Newbury: On a point of order, Speaker, standing order 58 requires the Treasurer to be direct. We are halfway through 3 minutes, and we have not even come close to the question, which was around Labor’s new property tax. I would ask you to bring the Treasurer back to the question.

The SPEAKER: The Treasurer was being relevant to the question that was asked. The Treasurer to come back to the question.

Tim PALLAS: The typical land tax paying individuals, whether they own an investment property or a holiday property, fit into the value of about $650,000 for capital unimproved land. If you put a property on it, the average I am told is about $1.3 million. The appreciation on those properties over the last 10 years on average is about 84 per cent. Put another way, that is about $75,000 of appreciation every year. It is about making sure that the tax that would be raised, roundabout $1350 a year, is about 1.5 per cent or thereabouts, on the capital appreciation that has been made. Nobody would be more conscious than this government of making sure that the load is borne appropriately when it comes to the tax burden in this state. That is why we have given 63 tax cuts and reductions in charges since we have been in government. What that means is that we are putting the load where it can best be borne to assist the community through what has been a very difficult time, to resource a government that put money into protecting this community –

Wayne Farnham interjected.

The SPEAKER: The member for Narracan can leave the chamber for 1 hour.

Member for Narracan withdrew from chamber.

Tim PALLAS: and to ensure that in the future, should there be other challenges to the state of Victoria, such as the $2 billion flood event just past – (Time expired)

Brad ROWSWELL (Sandringham) (14:26): Mark and Gail are retired teachers from Sale who own investment properties in Sale to fund their retirement so they do not have to rely on a pension. Why is the government now taxing Mark and Gail’s retirement income?

Tim PALLAS (Werribee – Treasurer, Minister for Industrial Relations, Minister for Trade and Investment) (14:27): Once again the point that the government has been very clear about is these are temporary. They are targeted and they are individual payments. They are aimed at ensuring that Victoria is in a strong position going forward. They are also in recognition of the fact that this government put something in the vicinity of $31.5 billion into support for this community and is consistently working towards ensuring that the community is adequately resourced –

James Newbury: On a point of order, Speaker, with respect, I refer you to Speaker Maddigan’s ruling of 26 August 2003, which found that, when responding to a question, a minister must address the question rather than responding generally. I put to you, Speaker, that every single minister today has refused to respond to the substance of the question and has only responded to the issue generally. I understand the concept of relevance, but that ruling I think is clear.

The SPEAKER: What is your point of order?

James Newbury: That the answers the Treasurer is providing are general, rather than specific to the question.

The SPEAKER: There are also further rulings that relate to the language that is used in relation to a question that is asked. In my view, and I am happy to have a discussion with you in my chambers afterwards, the Treasurer is being relevant to the question that was asked.

Tim PALLAS: In short, we think that landlords and others that have come through the pandemic in a relatively strong position ought to contribute to COVID debt repayments. Landlords have seen the value of their property increase 84 per cent. What is more, of course, we have seen advertised rents in metropolitan Melbourne in the last 12 months rise by 25 per cent.