A raft of new State Government taxes, red tape and regulations have sparked major problems in the housing market, The Nationals Member for Northern Victoria Gaelle Broad said today.
Ms Broad met with a roundtable of local real estate agents in Bendigo to discuss key issues affecting the housing sector.
“This is an unfolding disaster. Labor State Government policies are destroying Victoria’s housing market.” Ms Broad said.
“Today’s conversation with local real estate agents revealed major problems in the housing market.
Labor’s policies are driving up the social housing waiting list, as property owners are selling their properties in droves.
“The Labor State Government is pushing people out of rental properties onto the social housing waitlist. People who never sought social are now being forced into it.”
“Agents told me that landlords felt they had been ‘bashed over the head’ with new State Government taxes and regulations, and rising interest rates are adding to the burden.
The REIV found the total number of properties available for rent across Victoria in May 2023 was 21.8 per cent less than March 2020.
“A massive number of rental properties have disappeared from the market, which is reducing the number of houses available to rent, and driving up rents.
As landlords leave the industry, these homes are often sold to first home buyers who can no longer afford to build a new house.
“It’s a vicious cycle, and the agents reported that both landlords and tenants are suffering.
“They told me that this issue is often portrayed as landlord versus tenant, but in reality the vast majority of landlords and tenants look after each other,” Ms Broad said.
The Government’s new land taxes have also made it very hard for property developers who wished to subdivide and build new homes – further reducing the number of new houses available.
Increased Payroll Tax and WorkCover charges have also impacted the agents’ ability to run their own businesses.
Ms Broad said she was very concerned that the Government was attacking the housing market at a time when the state was facing major housing supply and affordability issues.
Ms Broad also raised concerns about the State Government’s soaring state debt, and dependence on property taxes.
Around 60 per cent of the State Government’s revenue comes from property.
“The State debt is so enormous under Labor that we are paying $15 million a day in interest but the debt keeps going up. Interest repayments on debt are expected to double from $4 billion in 2022–23 to $8 billion by 2026-27.
“Stamp duty on property has been a huge revenue raiser for the Government, but what happens when they are driving the property market into the ground?
“Labor has introduced more than 50 new or increased taxes and charges since coming to Government, and now Victorians are paying the highest state taxes in the nation”
Photo caption: Gaelle Broad MP has met with local real estate agents to discuss major problems affecting the housing market.
Media Contact: Linda Barrow 0484 303 764 linda.barrow@parliament.vic.gov.au
