Business Daily Media

Property peak urges re-elected Government to renew focus on real estate sector


The Real Estate Institute of Victoria (REIV) welcomed the Andrews Government’s Cabinet announcement today, congratulating The Hon. Danny Pearson MP as Minister responsible for real estate matters under his Consumer Affairs portfolio and Assistant Treasurer.  

With a range of critical market forces and industry issues currently surrounding and influencing the sector, REIV CEO Quentin Kilian said now is the time for Government to put genuine focus on good property sector policy.  

“While we have been calling for the property sector to have a dedicated ministerial portfolio, we look forward to working with Minister Pearson on a list of important issues, none more important than an update to the state’s tired tax regime,” Mr Kilian said.

“Despite the sector’s rapid recent evolution and a significant shift in market conditions, Victorian property participants are still dealing with archaic stamp duty that does nothing but inhibit aspiring homeowners, deter downsizers, and cripple investors, all which compounds our current housing supply crisis. 

“In Victoria, stamp duty equates to approximately 22 per cent of state and local government revenue so the question of removing stamp duty really centres around what to replace it with, and how to make the transition - this is where politics has the potential to interfere with good outcomes. 

“Other states are seeing the light on this antiquated tax and REIV invites the Victorian Government into a discussion with industry leaders and experts as we seek a better approach.” 

The REIV’s seven key arguments to remove stamp duty are: 

  1. reduced purchase costs; 
  2. enhanced mobility of skilled people via the reduction of transfer costs that in turn aids better economic outcomes; 
  3. likelihood of older people moving to more appropriate accommodation and thereby releasing suitable housing stock for younger families; 
  4. increase in taxation transparency; 
  5. improved housing affordability through decreased purchase costs and greater housing liquidity (supply of existing house stock); 
  6. with appropriate measures and intent by governments, increased availability of funds to meet social and affordable housing needs; and  
  7. greater stability in tax revenue modelling for governments. 

They are explained in the REIV’s discussion paper: State-based Property Taxes; an inefficient system stymieing housing availability

Mr Kilian added the 2021 changes to the Residential Tenancies Act and the early-2022 (but not yet released) Property Market Review also need to be immediate priorities for Government. 

“On behalf of 8000 plus REIV members who employ more than 15,000 Victorians, we look forward to engaging with the returned State Government and work towards renewing policy impacting one of Victoria’s most important sectors,” he said.

Property

Essential Considerations Before Removing a Tree in Sydney's Inner West

Tree removal is a significant task that requires careful deliberation, especially in urban environments like Sydney's Inner West. It involves understanding legal requirements, assessing en...

Business Daily Media - avatar Business Daily Media

Why Carports are a Smart Addition for Australian Homes

Car enthusiasts and car fanatics love their vehicles a little too much. Australian weather is an enemy for vehicles since there could be rain showers or hail storms. The need for a carpo...

Business Daily Media - avatar Business Daily Media

The Ultimate Choice for Modern Kitchens

Benchtop is the chandelier of the kitchen. It is one of those pieces that is of utmost central attention. It should be aesthetically very pleasing and durable. In the meantime, it should...

Business Daily Media - avatar Business Daily Media

What Is A Property Investment Fund?

A property investment fund is a financial vehicle that allows individuals to invest in real estate properties through pooled resources. These funds offer access to a diversified portfoli...

Business Daily Media - avatar Business Daily Media

Should You Build or Buy Your New Home?

To build or buy your first home, that is the question. Spoiler alert: building is better. Why? We’re about to tell you seven reasons why building ...

Property

Why Leadership Training Should Be Open For Freshers In The Corporate Sector

Yes, we know not everyone wants to become a leader - not everyone has leadership skills inside them. We agree, but then that is no reason why you ...

Business Training

Preliminary clearance rates dip as capital city auction activity rises

With the spring selling season just around the corner, auction activity rose above the 2,000 mark for the first time in nine weeks, with 2,018 homes...

Property

Di Jones real estate recognises high achievers

Di Jones celebrated its outstanding performers on Saturday (24 February 2018) evening at the Di Jones Real Estate Annual Awards.                   ...

Business Training

How Successful Businesses Make a Good Impression on Customers

For a business to go from being barely profitable to highly successful, it has to do a number of things right. No business stumbles upon long term...

Business Training

The Importance Of Professional Cleaners

Moving out of a settlement property can be a stressful and time-consuming process. One of the most crucial steps is bond cleaning, also known as e...

Property