The Real Estate Institute of Victoria (REIV) has labelled this year’s 2024-25 Victorian State Budget a status quo budget for the property sector, explaining this was welcome news in context of a steady flow of new taxes on owners and investors since 2021.
The peak body added, however, that the Government has ignored an opportunity to implement measures that aim to attract investors to Victoria’s property sector for the long-term, which it says will be crucial in the Government meeting its Housing Statement objectives of delivering 80,000 new homes per-year.
The REIV’s 2024-25 Budget Submission recommended the Government consider reconfiguring the state’s property taxation regime to incentivise investors, including the introduction of tax incentives for rental providers supplying long-term rental stock, a comprehensive review of stamp duty, and the retention of negative gearing in its current configuration.
Jacob Caine, REIV President, says this year’s budget maintains status quo for Victorian owner-occupiers, investors, renters and the real estate industry.
“The Allan Government’s first budget offered nothing substantive for the property sector, which in some ways is a positive given the heavy lifting property owners have performed in recent years. In the midst of perhaps the most acute housing supply and affordability crisis this state has ever experienced, this is a missed opportunity.
Victorians need from their government policies and initiatives that address the immediate housing needs of the community. Policies that encourage investment in property are essential for better utilisation of our existing housing ecosystem and can have a real and immediate impact on the housing crisis. Unfortunately, we didn’t see that in this budget.”
