Wednesday, 19 June 2024

Land tax

Kim O’KEEFFE (Shepparton) (19:04): (713) My adjournment matter is to the Treasurer, and the action I seek is for the Treasurer to provide the information as to why the land tax threshold went from $300,000 to $50,000. My office has been inundated with constituents right across my electorate that have been severely financially impacted by this and who are deeply concerned about the Labor government’s decision to impose severe changes to land tax on 1 July this year. We have an incredible shortage of rental properties in my region, and we are already seeing landlords selling up due to this tax. I was contacted by Mr Justin Stafford from Numurkah, who said:

I have made the decision that it is no longer feasible to own a rental property in Victoria, which is resulting in two families in Numurkah that will be looking for new residence …

which are extremely scarce. I have also been contacted by many self-funded retirees who are now faced with financial uncertainty, who thought that they were set up for their financial future. These are people who are not financially dependent on the state and who have tried to put themselves in a positive financial position for their future. It is very clear that if you increase land tax, the landowner has to pass that on to the tenant, and as in Justin’s case, if you cannot increase the rent, you sell the property.

It is astonishing that this government’s land tax change comes at a time when there is a severe rental shortage and a cost-of-living and homelessness crisis. We know many families are struggling to pay their bills and to put food on the table. Victorians are already paying the highest taxes of any state, including the highest property taxes. The government just keeps adding more taxes, which add more household financial pressure. The financial stress has got to a level that is overwhelming, and the level of hardship continues to grow. My office is inundated with people who are struggling, and my staff are navigating the service providers, hoping to get assistance. So many people are simply financially not able to manage the cost-of-living pressures.

It is expected that rents will go up due to this land tax, yet there is no plan on how people are expected to manage with this financial increase. It is actually bewildering when you look at the financial reality of this state and the impact that it is having on hardworking Victorians. Labor is punishing Victorians for its financial mismanagement, and this land tax is just another example.