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{{propApi.successMessage}} {{region}} Change locationAnother increase in property taxes coming
Another increase in property taxes coming
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The Victorian government has recently released for public comment proposals to increase fees charged by Land Use Victoria (once known as the Office of Titles). These fees include charges for registering transfers of land and registering plans of subdivision.
“The increases are significant, with routine transfer of land fees proposed to increase by 66 per cent, and fees for registering plans of subdivision proposed to increase by 19 per cent for the registration and 54 per cent for each parcel of land created.
“HIA only last year released a report on Taxation of the housing sector which showed that in Victoria 43 per cent of the cost of house and land package and 32 per cent of the cost to buy a new apartment was made up of taxes, fees, regulatory costs and infrastructure contributions,” added Mr Ryan.
“Now the Victorian government will add to these costs with more fee increases. The increases are proposed for transactions that are associated with making land available and allowing for more homes to be built.
“Costs like this that are imposed at the beginning of the development process or point of sale are particularly insidious. Like stamp duty, they act like sand in the gears of the housing market, hitting aspiring homeowners precisely when they can least afford it.
“They discourage downsizing and redevelopments that add to housing supply and disincentivise labour mobility. Productivity and economic growth suffer.
“HIA asks the Victorian government to consider if these fees are efficient and if they are consistent with their goal of increasing housing supply,” concluded Mr Ryan.
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