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MEDIA RELEASE – For Immediate Distribution
May 15, 2021
Master Builders Victoria concerned by State Government tax increases on homeowners, homebuyers, and investors.
MBV says tax increases may hamper efforts to get more Victorians into home ownership
Master Builders Victoria (MBV) says it is concerned by news that the Victorian State Government intends to impose significant property tax increases, which may impact Victorian homeowners, homebuyers and investors.
The Government has announced significant changes including:
- A 19 per cent increase in land tax on properties valued at between $1.8 million and $3 million, with the rate to increase from 1.3 to 1.55 per cent;
- A 13 per cent increase in land tax on properties valued at more than $3 million, with the rate to increase from 2.25 per cent to 2.55 per cent;
- An 18.2 per cent increase in stamp duty on a property's value above $2 million, with the value up to $2 million to be taxed at the current rate;
- A new Windfall Gain Tax, which would apply from 1 July 2022, where 50 per cent of the value of uplift as a result of a rezoning (both local government and state government), as assessed by the Valuer General at the time of the rezoning.
MBV CEO Rebecca Casson said the increases could be a disincentive to Victorian homeowners and investors, potentially affecting the future pipeline for the building and construction industry.
“We welcome the significant economic recovery measures implement by Governments, such as the HomeBuilder scheme, and believe all levels of Government need to continue to be cautious with any tax increases which could impact a successful recovery,” said Ms Casson.
“The building and construction industry continues to support all Victorians keen to get into home ownership, and MBV remains concerned that any tax increases may impact potential homeowners.”
ENDS:
AVAILABLE FOR INTERVIEW – MBV CEO Rebecca Casson
MEDIA CONTACT – Melissa Greenall, 0438 293 605
