Melina Bath – Labor’s unfair Land Tax hurting property market
Thursday 14 March 2024
The Nationals Member for Eastern Victoria, Melina Bath said Labor’s new land tax is desperately unfair and causing significant financial stress to mum and dad investors, homeowners, and renters.
The new land tax which came into effect on 1 January 2024 in Victoria passed through the state parliament last year was facilitated by a Labor, Greens, and Animal Justice Party alliance.
It lowered the tax-free threshold for land tax from $300,000 to $50,000 and introduces an additional flat tax of up to $975 on all Victoria households.
Ms Bath who opposed Labor’s land tax said Labor’s land tax had been implemented at the expense of all Victorian homeowners, with the tax set to impact struggling renters who will have the charge passed on or their property sold.
“The Treasurer Tim Pallas estimated that Labor’s unfair property tax will costs the average Victorian household an additional $1300 a year.
“Labor is punishing Victorian homeowners and investors for its own economic mismanagement through this appalling tax that’s driving up costs for home owners, increasing rents, increasing the cost of doing business and impacting our most vulnerable citizens.
“How the Allan Labor Government can wickedly disincentivise investment in Victoria’s property market is incomprehensible.
“There only two plausible outcomes of Labor’s land tax – a rental property fire sale and increased rents – neither are a palatable option.”
Victorians pay the highest property taxes in Australia. The average property tax per person across this year is $2120, compared to $1646 in New South Wales and $1343 in Queensland.
The Property Investment Professionals of Australia has named Victoria as the worst state in the nation for renters due to high stamp duty and the new land tax.
Ms Bath said the Allan Labor Government is treating hardworking everyday Victorians as it’s personal ATM to counteract its spiralling debt.
“Labor can’t manage money and once again Victorians are paying the price through higher taxes.”