Victorian landholders continue to feel the brunt of new land tax thresholds and other additional taxes introduced by the Allan Labor Government at the start of this year.
Since 2014, Labor have introduced 55 new and increased taxes, fees and charges, with the majority hitting the property sector.
This includes increased land tax bills, a rise in the amount paid as part of the Fire Services Levy, and the soon to be introduced 7.5 per cent short term rental tax.
The Nationals’ Member for Euroa, Annabelle Cleeland, said these taxes were disproportionately hurting regional homeowners and resulting in stagnant growth right across the state.
“These new taxes are making Victoria an unattractive place to invest in housing, with depleting investor confidence creating housing supply issue and soaring costs for aspiring homeowners and renters in our regional towns,” Ms Cleeland said.
“When it comes to land tax liabilities, thousands of our local landowners are feeling the impact of these higher costs.
“In the midst of a cost-of-living crisis it is wrong that everyday Victorians are being punished with increased taxes to make up for Labor’s inability to manage money.
“Victorians are already paying the highest taxes per person of any state in Australia according to the ABS, including the highest property taxes per capita in the nation at $2120, and now they have seen a rise in land tax bills, fire service levy costs, and rates notices all in the space of a few months.
“Despite these increases, our regional communities are yet to see meaningful improvement to the property sector, and the charges from the Fire Services Levy are not being fairly shared with local CFA brigades.”
The 2024-2025 State Budget confirmed that the Victorian Government is on track to collect $21.5 billion in annual revenue from Victorian property taxes alone – almost half the state’s tax take.
This includes 1763 landowners in the Mitchell Shire receiving higher land tax liabilities in 2024 than they did in 2023, in addition to 437 landowners in the Strathbogie Shire and 429 in Benalla suffering the same fate.
In a response to questions on notice from Ms Cleeland, the Treasurer revealed that the amount received from land tax bills in local government areas within the Euroa electorate was already 94 per cent higher in 2023 than it was in 2022, and expectations are that this will significantly rise again this year leaving local property owners even further out of pocket.
One Mitchell Shire resident that recently raised her situation with Ms Cleeland said “As self-funded retirees with our super in real estate, we have also been hit with the land tax grab.
“It seems the current government seeks to disincentivise financial independence and the will to reside in Victoria.
“If we could sell up and go, we would do so. Our only impediment is being able to sell our existing properties for a reasonable price, thanks to the incumbent state government policies.”
