Social and affordable housing
Mr LIMBRICK (South Eastern Metropolitan) (11:49): My question is for the Minister for Local Government. Last week the government announced another new tax on housing. At a time when housing affordability is such an issue and first home buyers are looking for opportunities in the outer suburbs or regional Victoria to get into the housing market, this new tax could push that dream even further out of reach. The announcement also stated that new housing dwellings would be exempt from council rates, with the $54 million currently being spent on public housing rates reinvested in public housing maintenance and upgrade works. This suggests a cost transfer to councils, which will no longer have access to the $54 million in revenue. Presumably they will have to either find savings somewhere or find an alternative source of revenue. My question for the minister is: what effect might this change have on local government finances?
Mr LEANE (Eastern Metropolitan—Minister for Local Government, Minister for Suburban Development, Minister for Veterans) (11:50): Thanks, Mr Limbrick, for your question. As far as the affordability of housing goes, that is really a question to ask the Minister for Housing. As far as the rate exemption for social housing goes in terms of the local government sector, it will be up to each local government how they deal with that particular change in the legislation. They will have until the start of 2023, and it will be phased in, so they will have a lot of time to be able to work through that. Some of the figures that we see, if councils do decide that they may pass this on to the ratepayers, are in the vicinity of $8 a year that may be passed on to the ratepayer. But I have had a number of conversations with local councils before that have really prioritised the importance of social housing and housing in particular, affordable housing, so I do not think there is any problem with all levels of government contributing to safe social housing for the people in our community that are most in need.
Mr LIMBRICK (South Eastern Metropolitan) (11:51): I thank the minister for his answer. Some representatives of councils have already expressed some frustration with this proposed change. The mayor of Ballarat is quoted today in the Courier highlighting that regional councils are more reliant on rates for revenue than inner-city councils and that the government proposal might push affordable housing further out of reach for low-income renters who want to enter the property market. Has the minister met with any local government stakeholders to hear their views about these proposed changes yet?
Mr LEANE (Eastern Metropolitan—Minister for Local Government, Minister for Suburban Development, Minister for Veterans) (11:52): I thank Mr Limbrick for his question. I do not think this proposal was completely new to the local government sector, and I have had conversations with peak bodies and others about their concerns. Mr Limbrick, I am not ruling out their concerns, and I am more than happy to have another round of conversations with members of the local government sector in the coming weeks.