The Property Council has welcomed the Victorian Coalition Government’s first state budget yet warned against an increased and heavy reliance on commercial property taxes such the congestion levy, fire services levy and stamp duties.
“The Victorian State Budget for 2011-12 is a conservative first budget as was the Coalition’s message from the start. The Coalition Government has delivered on its 2010 election promises and has been consistent in its messages and actions in this budget,” stated Victorian Executive Director of the Property Council, Jennifer Cunich
“We welcome the significant reduction in residential stamp duty for first home buyers but while it would appear that some issues have been addressed there is an increased reliance overall on commercial property taxes and businesses for the delivery of election promises as evident in the 2011-12 Victorian Budget.”
The 2011-12 Victorian Budget makes an assumption that the property market has slowed and the Victorian Government expects a reduction in overall volumes. However, evidence points to the contrary.
“The Property Council is incredibly concerned by the Victorian Government’s increased reliance on commercial property taxes that is blatantly obvious in the detail of this 2011-12 Budget,” said Ms Cunich.
“Whilst it may be difficult for tax payers to see the benefits of reducing or abolishing commercial stamp duty, there is a direct benefit to the economy and therefore the general community through the creation of jobs and increased gross state product (GSP),” commented Ms Cunich.
“The Property Council maintains that Victoria’s land tax rate should be reduced to 1.5% and commercial stamp duty to 4%. These combined reforms will benefit Victoria’s economy and create jobs. These taxes eat away at the super funds of millions of Australians because they target property trust investors,” Ms Cunich added.
The Property Council has enjoyed a productive working relationship with the Victorian Government and Treasurer Kim Wells and has engaged actively with the Victorian Coalition Government both in opposition and since its election in November 2010.
Jennifer Cunich, Executive Director – (03) 9650 8300
Danni Addison, Public Affairs Manager – (03) 9664 4230 or 0408 861 408