Thursday, 20 March 2025

Emergency Services and Volunteers Fund

David DAVIS (Southern Metropolitan) (12:31): (867) My question is again to the Treasurer. Treasurer, you have announced a special additional levy to be placed on rental providers for the new and savage emergency management and volunteer fund. Given the surge in rents over the last two years and the desperate need for housing, did the government –

Members interjecting.

David DAVIS: President, can we restart?

The PRESIDENT: Yes, we can restart, as long as there is a deal that when she answers it, you do not yell at her. Restart the clock.

David DAVIS: Treasurer, you have announced a special additional levy to be placed on rental providers for the new and savage emergency management and volunteer fund. Given the surge in rents over the last two years and the desperate need for housing, did the government model the increase in rent, which will occur with these changes, and the reduced supply of housing? If so, will you release the modelling? And if not, why not?

Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:32): I thank Mr Davis for his question. Obviously we will have the opportunity to talk about the Emergency Services and Volunteers Fund in the coming weeks, as it is currently being debated in the Legislative Assembly. I take issue with the way you have characterised this levy, Mr Davis. This is applying across the board. This is not targeted in particular at areas; this is building on the existing fire property services levy to use properties as the link in relation to ensuring that we can spread the capacity to raise this important fund for our emergency services workers.

In relation to the impact on landlords and the impact in relation to rents, I do reject the premise of your question in connecting a small levy increase to being a massive impact on rental costs. What we know drives up rental costs is the market. What we know drives up rental costs is the availability. That is why we want to make sure we have got more houses and more apartments, and that is how a responsible government will deal with rental increases.

David DAVIS (Southern Metropolitan) (12:33): I thank the minister for her response. It is very clear the government did not model these outcomes. Treasurer, last year there were 24,716 fewer homes being rented in Victoria through the private sector. Prior to this new tax it was reported that property investors were continuing to flee Victoria in their tens of thousands amid increased land taxes and tightened rental regulations. Picking up your earlier point, Treasurer, given this comes on top of massive increases in land tax and sharp new rental rules, is the government concerned that more property investors will flee Victoria and put further upward pressure on rents?

Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:34): Similar to previous responses, Mr Davis, we are building more homes and approving more homes, and more first home buyers are entering the market in Victoria than in any other state. In relation to the statements that you made, I might use some other words to counteract what you said, because recent analysis by Jim Malo at domain.com.au demonstrates that more investors are buying than selling in Victoria, meaning that there are more investment properties, not less. He also found that while more than 40 per cent of New South Wales investors invest in properties interstate, less than 10 per cent of Victorian investors do, because Victorians know that Victoria is a fantastic place to invest their money. As I said, if we are talking about pressure on landlords, let us talk about the facts. We know that interest rates have had an impact, we know that supply has an impact, and that is what we are taking measures on.