- Download our 2021 Vic budget submission (submitted February 2021)
Executive Summary
Prosper welcomes the opportunity to contribute to the 2021-22 Victorian Budget.
We are an independent, Melbourne-based research institute with a focus on the
management of exclusive and essential resource allocation through revenue policy. This
includes land and other natural resources, essential services that are most efficiently
provided by one supplier, and government-instituted monopolies such as taxi and fishing
licences.
It is our position that the unearned and unproductive streams of private income derived from
these elements of our economy should be more heavily taxed. Meanwhile, taxes on the
productive sector should be eased, making for a more equitable and more efficient economy.
It is from this position that we present our Victorian budget submission.
The Victorian Government has done well in the face of the COVID19 pandemic, and on
balance enacted an excellent fiscal response relative to all other governments in Australia.
Prosper thanks the government and treasury for prioritising fiscal stimulus, and in directing
that stimulus to areas of great public benefit.
In contrast to this, Prosper believes some tax relief policy was misguided Stamp duty relief
feeds into higher land prices, exacerbating affordability pressures and running counter to the
government’s laudable social housing program.
The short term challenges have largely been addressed, and it is encouraging to see the
government considering long term fiscal reforms. Prosper applauds the government’s
willingness to pursue measures such as road user charging for electric cars. While it is
unfortunate that Stamp Duty to Land tax reforms have been shelved for the time being, we
hope the government will revisit it in coming years.
