{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Economic research and forecasting Economics Housing outlook Tailored market research Economic reports and data Inspiring Australia's building professionals HOUSING The only place to get your industry news Media releases Member alerts Submissions See all
Business support
Business support $vuetify.icons.faArrowRight
Become an apprentice host Hire an apprentice Why host a HIA apprentice? Apprentice partner program Builder and manufacturer program Industry insurance Construction legal expenses insurance Construction works insurance Home warranty insurance Tradies and tool insurance Planning and safety services Building and planning services How can HIA Safety help you? Independent site inspections Solutions for your business Contracts Online HIA Tradepass HIA SafeScan HR Docs Trusted legal support Legal advice and guidance Professional services Industrial relations
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right Building codes Australian standards Getting it right on site See all Building materials and products Concrete, bricks and walls Getting products approved Use the right products for the job See all Managing your business Dealing with contracts Handling disputes Managing your employees See all Managing your safety Falls from heights Safety rules Working with silica See all Building your business Growing your business Maintaining your business See all Other subjects COVID-19 Getting approval to build Sustainable homes
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career Become an apprentice Apprenticeships on offer Hear what our apprentices say Advice for parents and guardians Study with us Find a course Get your builder's licence Learn with HIA
HIA community
HIA community $vuetify.icons.faArrowRight
Join HIA Sign me up How do I become a member? What's in it for me? Get involved Become an award judge Join a committee Partner with us Get to know us Our members Our people Our partners Mates rates What we do Mental health program Charitable Foundation GreenSmart
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards Australian Housing Awards Awards program National Conference Industry networking Events
HIA products
HIA products $vuetify.icons.faArrowRight
Shop @ HIA Digital Australian Standards Contracts Online Shipping and delivery Purchasing terms & conditions Products Building codes and standards Hard copy contracts Guides and manuals Safety and signage See all
About Contact Newsroom
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Change location
{{propApi.text}} {{region}} Change location
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

Social housing tax will hurt Victorian home buyers

Media release

Social housing tax will hurt Victorian home buyers

Media release
Today’s announcement that the Victorian Government will introduce a new tax to fund social housing is simply the wrong approach and will be another hit to housing affordability for all Victorians.

“The new Social and Affordable Housing Contribution will apply a tax of 1.75% to all new developments with three or more dwellings and to all new subdivisions with three or more lots from July 2024. 

“The tax will apply to the majority of new housing in Victoria, covering all local government areas in metropolitan Melbourne, as well as the regional cities of Greater Geelong, Ballarat, and Greater Bendigo. 

“The cost of new homes after July 2024 will increase with this tax being passed through in the land prices for all new lots in these areas. 

“Victorian home buyers already pay a range of taxes when they buy a new home, contributing half of Victoria’s tax revenue now. In Melbourne 38% of a new home build is made up of taxes, fees and charges. This new tax will see land and house prices being pushed further out of reach of new home buyers. 

“Ultimately it is new home buyers who will lose out as the taxes must be passed on in higher land and house prices. 

“Median land prices are $377,000 in Melbourne, while the median house price is now $950,000. Home buyers are already contributing their fair share of revenue to the state. 

“HIA estimates that this tax could add over $6,600 to the cost of land for new homes. Add stamp duty and GST along with many more costs and this tax could cost more than $20,000 for a new home buyer, adding to their mortgage repayments. 

“Funding for social and community housing is a critical role of government. But this is a community need and the response should be an equitable one. It simply doesn’t make sense to suggest that making houses for those that can afford to buy a new house cost more is the right solution to support those that can’t afford to buy one. This tax will perversely make the problem of affordability for all Victorians worse, not better. 

“The Government should be funding social housing from general rates and taxes as well as working in partnership with the housing industry and the community housing sector to identify feasible and effective actions to support the delivery of long-term solutions for public housing needs. 

“The tax will hit many more new homes than the suggested 30% of planning permits. The tax also comes at a time when the government is implementing a new windfall gains tax in regional Victoria which will raise land prices significantly, increasing building code requirements that will add to construction costs and just last week increased builder registration fees by between 40 percent and 200 per cent.

“The Government must stop shifting the burden of funding social and community infrastructure onto a select group of Victorians each year that choose to buy a new home. This tax is inequitable and unfair.

For more information:

Fiona Nield

Regional Executive Director - Victoria

Joe Shanahan

Manager, Media and Government Relations
Latest articles
View all news $vuetify.icons.faArrowRight
15 May
Accessing super: home ownership matters

The Liberal Party’s announcement today that if re-elected they will allow Australians to access up to $50,000 from their superannuation to fund a deposit to help them buy their first home is a welcome one, and an initiative that HIA has championed.

13 May
Strong pipeline sees jump in new home sales for WA

Western Australia is one of just two states to see an increase in new home sales in April, recording a significant increase in the amount of new activity from the same period prior to the COVID-19 pandemic.

13 May
HIA welcomes focus on skilled workforce in WA budget

The Housing Industry Association (HIA) has welcomed the ongoing support for Western Australia’s residential building industry in the 2022-2023 State Budget, including a number of targeted initiatives aimed at attracting more skilled workers into the state amid record high levels of detached construction.

12 May
Draft Variation 369 start date announced

The ACT Government has announced an implementation schedule and transition rules for Variation 369 to the Territory Plan.