Hi ,
The Real Estate Institute of Victoria (REIV) has
made a submission to the 2024-25 Victorian State Budget urging a comprehensive review of the state’s property tax system. The REIV hopes that reconfiguring the property tax regime will attract the hoards of investors who sold up last year back to the Victorian property market.
The REIV submission outlines three key recommendations:
1. That the Victorian Government consider new tax incentives for investors
supplying long-term rentals to the market. The REIV suggests long-term tax concessions (such as for investors supplying rental accommodation for five to ten year periods) would have greater impact than the current levies on vacant land and short stay accommodation.
2. That a complete review of the state’s stamp duty regulations is undertaken and stamp duty is replaced with a tax regime that promotes mobility and supports economic
activity.
3. That negative gearing is retained in its current configuration. The REIV believe that negative gearing incentivises investment in the rental market and without it rental stock would further decrease, causing further destabilisation to Victoria's housing market.
REIV President Jacob Caine said, “It’s time the Victorian Government reconsidered several comfortable yet outdated taxes like stamp duty and instead adopted fit-for-purpose tax measures that will drive investment and give more Victorians a roof over their heads.”
