The Property Council has called for a greater strategic direction from the Victorian Government in its 2011-12 Pre-Budget Submission. The Property Council recognises that strong economic management is important to Victoria’s ongoing success.
The Property Council’s Victorian Executive Director, Jennifer Cunich, commented today that, “as property taxes account for around 37% of Victoria’s revenue, a strong property sector is central to Victoria’s overall economic performance.”
“The Property Council supports economic growth through efficient, equitable and sustainable funding sources. We encourage the Victorian Government to consider targeted government funding on items which we have shown through independent research to improve economic growth and the welfare of Victorians.”
The Property Council’s previous advocacy achieved significant land tax reform; the current top rate of land tax rate 2.25% was reduced from the previous 5% rate. However, due to ‘tax bracket creep’ in recent years, the benefits to households, businesses and the Victorian economy have been eroded.
“The Property Council has consistently advocated for a reform to inefficient state taxes. The Victorian Government is in a position take on tax reform,” said Ms Cunich.
“In our engagement with the Coalition Government, the Property Council has maintained that Victoria’s land tax rate should be reduced to 1.5% and commercial stamp duty to 4% in the interim. These combined reforms will benefit Victoria’s economy and create jobs.”
This is based on comprehensive in-depth research the Property Council has undertaken and presented to the current Victorian Government,” outlined Ms Cunich.
“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 presented its 2011-12 Pre-Budget Submission to the Victorian Government.
Jennifer Cunich, Executive Director – (03) 9650 8300
Danni Addison, Public Affairs Manager – (03) 9664 4230 or 0408 861 408