HIA Victoria Executive Director Keith Ryan said that while adjusting the land tax threshold is a positive signal and ideally more substantial tax reforms will be proposed soon, such changes must be accompanied by a broader commitment to reduce the regulatory burden facing builders, developers and the property industry.

“Political parties have recognised that Victoria’s land tax settings need reform. Lifting the threshold will help restore some confidence and reduce cost pressures at a time when the industry is under extraordinary pressure,” he said.

“But land tax is only a part of the equation. Builders and property businesses are dealing with an increasingly complex tax and regulatory environment that slows project delivery, adds cost and discourages investment. If Victoria wants more homes built, governments must focus on reducing excessive taxes and unnecessary regulation and also streamlining approval processes.”

HIA says meaningful reform must include improving planning systems, removing unnecessary compliance requirements, and ensuring new regulatory proposals are evidence based and workable in practice.

“Victoria needs regulations that support building activity and do not make it harder. Land tax reform is welcome, but it must sit within a much broader agenda to lower taxes, reduce red tape and encourage the building of the homes our state urgently needs” concluded Mr Ryan.

HIA’s Victorian Election Policy Agenda, Builders Want to Build, calls on all parties to reduce regulatory burdens on builders, lower property taxes, expand land supply, fast-track planning approvals, strengthen the construction workforce and support greater housing choice across Victoria.

For more information please contact: