{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location {{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change locationFrom lockdown to lock out Victoria introduces another tax
From lockdown to lock out Victoria introduces another tax
Member and guest login
Enter your email and password to access secured content, members only resources and discount prices.
Did you become a member online? If not, you will need to activate your account to login.
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Forgotten password
Need some help?
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
If the email address you have entered is registered, you will receive an email with further instructions.
Become part of the HIA community
Enables quick and easy registration for future events or learning and grants access to expert advice and valuable resources.
Create a guest account
Enter your details below and create a login
Despite the lockdowns median house prices are on the rise in Melbourne.
Adding to this cost burden will be the State Government’s proposed Windfall Gains Tax, which will likely pass through the Legislative Council next week and become law.
In pursuing such an outcome, the Government appears determined to put home ownership out of reach for even more Victorians, by placing further upward pressure on the cost of land for new housing which continues to be in short supply.
The Windfall Gains Tax is only a windfall for the Victorian Government. For every day Victorians, it’s a slowing of the state’s economy and a tax on Victorian jobs at the worst possible time, as the state rebuilds from the world’s longest COVID pandemic lockdown.
The Windfall Gains Tax will see 50 per cent of any uplift in land price by more than $500,000 as a result of rezoning going straight into the government’s coffers.
The timing of this new tax couldn’t be worse. It will come as homes built using the recent Federal Government’s HomeBuilder grant will have been completed, with the risk that new home builds will most likely be in decline threatening jobs in the years ahead.
Future homebuyers, many whom would have already been waiting patiently to buy and build their own home, will be faced with rising land costs because of the new tax.
For private land owners, the tax will be a major disincentive for them to sell or develop their land for housing, and if they do then the costs will be passed directly to developers and homebuyers.
Bringing new land to market in Victoria takes up to a decade, meaning land owners already manage the risk, cost and changing legal arrangements that may affect a project. Certainty is key - land owners are used to paying Federal taxes on property sales, but this Windfall Gains Tax will bring unnecessary complexity to Victorian property transactions and slow down housing supply. Developers who purchase land for housing development may simply not be able to proceed with their projects in the years to come.
HIA has come together with other Victorian Industry Groups to oppose this tax. At a time where recovery from COVID-19 is the biggest concern, a new tax on property should simply be shelved.
For more information please contact:
BASIX transition - Modified or incomplete contracts are ineligible
Building contracts that have been modified or have information missing may be ineligible for the BASIX Transition.
Sales of new homes weak for the start of 2024
“The prospect of a pick-up in home building activity in 2024 is not likely given the low volume of new homes sales in the first three months of 2024,” stated HIA Senior Economist, Tom Devitt.
NSW confirms transitional period for engineered stone ban
On 26 March, HIA advised members that NSW will be adopting a transitional period for the use of engineered stone to ensure businesses can fulfill existing contracts with less disruption and uncertainty. Today, HIA has received the formal confirmation from SafeWork NSW acknowledging the significant impact the ban will have on the operations of businesses HIA represents and the engineered stone industry more broadly.
NT commercial licencing is now law
On 15 April 2024, the NT Government will enact the Building Legislation Amendment Bill 2024 addressing commercial registration. The rollout will occur over two stages and contains a significant transition period allowing practitioners time to become registered.