The Andrews’ government has heeded calls to ensure all Victorians have access to housing with today’s Victorian budget. Expanding public sector housing on public land is the right move. Exempting new buyers from stamp duty is the wrong move.
“The Pallas budget could well have been written by the property lobby. Aside from the $6 billion on social housing, this budget will only make housing more expensive” stated Prosper Australia President Catherine Cashmore.
“Can someone please paint this over the Treasurer’s door: If buyers attain more credit, house and land prices will increase.”
“The First Home Buyers stamp duty discount had to be increased from $600,000 to $750,000 because it encouraged higher bidding. Widening the stamp duty exemptions will also prop up land prices and worsen affordability.”
“Now anyone buying a median priced home will receive at least a 25% stamp duty discount on existing homes. As we have seen with past attempts to subsidise our way out of a housing crisis, it only compounds the issue.”
“This won’t just keep property developers in business, it will push up the price of housing. We expect corks will be popping across the property industry tonight.”
“Victorian land prices increased by $135.6 billion in the most recent financial year. High and rising land prices and the associated household debt are a drag on consumer demand. We need people spending in local businesses and going on holidays, not paying down more mortgage debt.
“With the property market quickly recovering, the Pallas decision to sidestep the urgent need for land tax reform and simply discount stamp duty is irresponsible” concluded Cashmore.