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NEW LABOR HOUSING TAX PUNISHES FIRST HOMEBUYERS
THE HON MICHAEL SUKKAR MP
Assistant Treasurer
Minister for Housing
Minister for Homelessness, Social and Community Housing
MEDIA RELEASE
Friday 18 February 2022
NEW LABOR HOUSING TAX PUNISHES FIRST HOMEBUYERS
Today, the Victorian Labor Government announced a new tax on housing that will add a minimum of $13,000 to the cost of a new home.
Victorian Labor’s Social and Affordable Housing Contribution will add a 1.75 percent tax on all new residential developments.
Assistant Treasurer and Minister for Housing, Homelessness, Social and Community Housing Michael Sukkar said this latest tax increase would punish first homebuyers and restrict the supply of housing.
“Make no mistake, this is a tax on first homebuyers that will make it harder and more expensive for Victorians who are trying to get into the housing market,” Minister Sukkar said.
“Not only will this latest tax hurt first homebuyers, but it will also put downward pressure on housing supply in Victoria and push up housing prices.
“We are seeing the results of Victorian Labor’s poor financial management of their Budget. First homebuyers should not be penalised for decades of chronic under-investment in social housing by the Victorian Government.
“The Federal Labor party needs to urgently condemn yet more housing taxes by their state Labor counterparts. If Anthony Albanese is serious about cost of living pressures and helping Victorians into their first home, he needs to publicly denounce this new tax hike.
“Labor’s refusal to denounce new taxes on first homebuyers is damning, and is further evidence that higher taxes are in Labor’s DNA at both a state and federal level.”
Today’s latest Labor tax increase is in addition to the Windfall Gains Tax (WGT) announced in December 2021 and is now the 10th new property-based tax the Victorian Government has introduced.
Together, these two taxes alone taxes will add an additional $63,000 to the cost of a new home in Geelong. This does not include Victorian taxes, fees and charges that account for 42 percent of the cost of a new home.
Social housing is the responsibility of state governments, and the Morrison Government has played its role in assisting the Victorian Government by providing $2.06 billion over five years to improve social and affordable housing outcomes.
Unfortunately, Labor at all levels of government have proved they can’t manage budgets, so taxes on first homebuyers will always be their answer.
Only the Liberals and Nationals can be trusted to deliver lower taxes for Australians so they can realise the dream of owning their own home.