Victorian Treasurer Tim Pallas has simply appeared on ABC Radio Melbourne and asserted growing land tax wasn’t answerable for vital rental hikes throughout the state.
For normal taxpayers with property holdings above $300,000, and belief taxpayers with property holdings above $250,000, land tax charges will enhance by $975, plus 0.1 per centage level of the worth of their landholding above $300,000.
Victorian Treasurer Tim Pallas photographed contained in the state funds lock-up on Tuesday. Credit score: Joe Armao
All present land tax exemptions will proceed to use, together with these on the principal place of residence.
Pallas was pressed on will increase in land tax by presenter Raf Epstein, who requested whether or not the treasurer was comfy with rental rises ensuing from further prices borne by landlords.
“I feel it’s a specious logic and I don’t assume it’s not essentially borne out by historical past. If you happen to look within the final 12 months for metropolitan Melbourne, the marketed rental will increase have been 25 per cent,” Pallas stated.
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“There’s 1.2 per cent of vacant properties in metropolitan Melbourne for the time being, and it in all probability implies that [rental increases] are subsequently a perform of provide and demand, not concerning the prices that you simply carry.”
Pallas stated he believed that rises in Victorian land tax didn’t play any “substantial function” in elevating rents throughout the state.
“The market that each renter is shopping for into is a market that’s saturated for the time being with individuals determined to get into housing, and is a perform of the dearth of provide of applicable housing available in the market,” he stated. “What I’m additionally saying is we recognise that that could be a drawback, however governments have to be a part of that answer.”
