Thursday, 19 October 2023

State Taxation Acts and Other Acts Amendment Bill 2023

Second reading

Debate resumed on motion of Tim Pallas:

That this bill be now read a second time.

Brad ROWSWELL (Sandringham) (12:51): It is again a real thrill to be on my feet and to address the State Taxation Acts and Other Acts Amendment Bill 2023. Of course just moments ago in this chamber I had the opportunity to do that when the Manager of Opposition Business, my colleague the member for Brighton, moved to adjourn the debate on the Special Investigator Repeal Bill 2023 to bring on more time for this chamber to discuss this very important bill, which I am pleased to say, less than 9 minutes before we break for lunch, we are doing now. I am disappointed that my contribution will be made in two tranches, now and then after question time, but I will do my best to get through as much as I need to between now and the customary lunch break.

It concerns me that in this bill, in one of the first acts of the newly reset – so the government will have us believe – Allan Labor government, they introduce two new taxes, two new property taxes. Since this government was elected nine years ago, this Labor government has introduced a new tax or increased an existing tax every two months on average. Nothing could be more certain. But in recent times the Labor government have outdone themselves because they have not just been announcing new or increased taxes every two months, they have been introducing new or increased taxes every week. Since the government delivered the budget earlier this year we have had a new schools tax, a new rent tax and a new jobs tax. We have had a health tax, we have had a holiday and tourism tax – and I note the presence of my colleague the Shadow Minister for Tourism, Sport and Events and member for Nepean in the chamber at the moment – and we have two new property taxes, one of which will significantly impact holiday homes in this state. I will get into that in a little bit more detail during the course of my contribution.

To contextualise my contribution as well, these two new taxes were introduced just days after the government signed their new housing statement together with housing industry stakeholders. These two new taxes were announced on Tuesday morning of the last sitting week at breakfast – at a breakfast hosted by the Property Council of Australia. They were announced on behalf of the government by the Treasurer. The Property Council, who were hosting the breakfast, knew nothing of this, and having investigated this further and done a bit of due diligence on the matter, I am happy to assert, not because I have privilege but because it is true, that the Premier’s office also knew nothing about these two new taxes being announced at this breakfast at that time.

Let me take the chamber through the rest of the events of that day. The Treasurer announced these two new taxes, and the property industry representatives present at the breakfast knew nothing of these taxes but were deeply concerned by the fact that the Treasurer had in fact announced another two new taxes on their industry. The fourth estate, journalists, who we respect and admire at times, then wanted to speak to the Treasurer. Quite legitimately they wanted to speak to the Treasurer. They wanted to get more detail. You cannot just announce two new taxes at breakfast and not give any detail whatsoever, but that is exactly what the Treasurer did on that occasion. He was scheduled to speak to journalists at the back doors of this place at 11 am on that Tuesday, and guess what?

James Newbury: He didn’t turn up.

Brad ROWSWELL: Thank you, member for Brighton – spot on. He did not turn up. Journalists were there from 11 am until midday, when this Parliament resumed, and he did not turn up. The Treasurer did not turn up to face questions based on the two new property taxes that he had announced at breakfast. He did not turn up. There was an opportunity for the Treasurer to turn up to answer legitimate questions that journalists – who were doing their job to keep the government accountable, as this side of the house does day in, day out – had about the implication of these taxes. What were they? What were the costings? Who was it going to impact? How much was the revenue? They were the basic questions that you would want to know after the announcement of two new taxes at breakfast, unbeknown to people. The Treasurer did not show up. Parliament started, question time came, question time went, and at a quarter past 3 on that Tuesday the Treasurer, tail between his legs, wandered out to the back doors of this place to answer the questions that the journalists had. Journalists had been there since 7:45 that morning. They had been there since 7:45 that morning, ripe and ready to ask the questions, waiting for the Treasurer to answer the questions, and he did not show. He squibbed it. He squibbed the opportunity. And we now know why – because these two new taxes introduced by this government that we now see in this State Taxation Acts and Other Acts Amendment Bill 2023 punish Victorians and impose a cost impost on Victorians at a time when they can least afford it.

This government seems to think that taxation is the answer to the problems that they have created, that taxation will be the panacea to the waste that is part of this government’s DNA, the panacea to the overspending that this government has become accustomed to over the last nine years and the panacea to this government spending more than they are receiving budget after budget after budget, time and time again. It is not. If history has taught us one thing, it is that you never, ever tax your way back to prosperity. That truism is known the world over; this government has no ears to listen to that truism whatsoever. With this bill this government are introducing the 51st and the 52nd new or increased tax that they have introduced and imposed upon the Victorian people since they were elected nine years ago – new taxes and increased taxes that they have introduced in the last nine years on the back of a promise by the then Premier of the state, the former member for Mulgrave, that he would not impose new taxes on the people of Victoria. Well, we all know that that was an absolute furphy, and Victorians are paying the price because of it.

This bill proposes to do a number of things: to expand the vacant residential land tax, to tax residential land that has been undeveloped for more than five years, to prohibit the apportionment of land tax and known windfall gains tax liabilities between vendors and purchasers and to make a number of other minor technical changes.

Sitting suspended 1:00 pm until 2:02 pm.

Business interrupted under standing orders.