The Victorian government has announced a new tax increase on undeveloped and empty homes.
The reform, which will see the Vacant Residential Land Tax spread to the entire state starting in 2025, was revealed by Treasurer Tim Pallas at an industry breakfast this morning.
The only residences subject to the tax at this time in Melbourne are those that have been vacant for longer than six months. However, vacation residences are exempt.
Pallas argued that encouraging owners of vacant land to develop their property was a crucial step.
“Our clear message to landowners is to develop the land or sell it to someone who will,” said Pallas.
“In a same vein, we are not establishing a law for landowners that we as a state will not enforce on ourselves.
We demand that every government entity holding land provide a detailed justification for why they are keeping it in their possession rather than selling it.
On her first day in the top position at the Victorian Parliament, Premier Jacinta Allan supported the action today.
“We are considering every option to increase home construction. We’re doing everything we can to boost supplies, she said.
Brad Rowswell, the shadow treasurer, condemned the tax increase.
“They have a debt problem, which is why they are acting in that way. And an economic issue they created,” he said.
Although they applauded the news, the Greens said that the tax should be doubled and made mandatory.
Currently, only homeowners who inform the government that their residence has been vacant are required to pay a vacancy tax.
“When there is no enforcement of an extremely weak system. According to Greens leader Samantha Ratnam, people will go to great lengths to avoid paying their taxes.
