Thursday, 2 May 2024

Land tax

Gaelle BROAD (Northern Victoria) (19:11): (873) My adjournment matter is for the Treasurer. When Labor were elected to government they promised not to introduce any new taxes, but in the last decade they have introduced more than 53 new or increased taxes. After a decade of financial mismanagement under Labor, Victoria’s net debt has risen from $21.8 billion and is projected to be more than $177 billion by 2027. Because Labor cannot manage money, Victorians now pay the highest taxes in Australia.

Rita contacted me recently about Labor’s increased land tax. Several years ago she and her husband purchased two old homes in Bright. Both had mortgages, and they have spent a lot of money renovating the properties. They planned to live in one in retirement and use the other one as extra accommodation when their children come to visit. In the meantime the properties have been rented out to good tenants at low rent. Their land tax has skyrocketed from $2000 five years ago to $10,000 last year and, with Labor’s further land tax changes, a whopping $20,000 this year. This tax is a huge burden on this hardworking couple. Rita’s husband is a 68-year-old builder, and he has to keep working in a demanding physical job to pay these taxes. She said, ‘We don’t mind paying tax, but this is ridiculous.’

Last week I spoke with Tom, a local real estate agent who is also greatly concerned about the effect that land tax is having on the rental housing market in northern Victoria. Similar concerns were raised last year at a round table that I had with real estate agents in Bendigo. Under this government landlords are being forced to sell their properties and rentals are disappearing from the market. The lack of properties means that rentals are going up and many are struggling to put a roof over their heads. Labor’s policies are pushing people out of rental properties onto the public housing waitlist. As landlords leave the industry, these homes are often sold to first home buyers who can no longer afford to build a new home. It is an unfolding disaster, and both landlords and tenants are suffering. With rising living costs, the government’s land tax changes come at a time when Victorians can least afford it, and Victorians are being punished for Labor’s economic mismanagement. Victorians cannot afford any more of Labor’s taxes. The action I seek is for the Treasurer to stop wasting money on reckless city-based projects like the Suburban Rail Loop and to share a responsible state budget that sees regional Victoria receive a fair share of funding.