STATE Member for Shepparton District, Kim O’Keeffe, has raised concerns about the State Government’s Land Tax hikes, and the financial impact this will have on Victorian residents.
She said that by lowering the tax-free threshold for land tax from $300,000 to $50,000 and introducing an additional flat tax of up to $975, the government has increased the tax base at the expense of Victorian homeowners, which will also significantly impact renters.
“I’ve been approached by many concerned people from across the Shepparton district who have been directly financially impacted by these tax increases,” Ms O’Keeffe said.
Treasurer Tim Pallas’s announcement that the average Victorian household will face an additional $1,300 in expenses each year due to this hike is particularly alarming for the Shepparton District, where people and businesses are already navigating a challenging economic climate, she said, adding that the unexpected land hikes have also placed an unnecessary strain on landowners.
“Property owners who had planned for their future are now finding themselves in a position where they must either pass on these costs to tenants or sell their properties,” Ms O’Keeffe said.
“These changes have threatened their financial security and placed additional pressure on the rental market, potentially driving up costs for renters at a time when affordability is already a critical issue.”
Victorians pay the highest property taxes in Australia. The average property tax per person across this year is $2,120, compared to $1,646 in New South Wales and $1,343 in Queensland.
“This move by the Labor Government is yet another example of their economic mismanagement, punishing Victorians who are working hard to maintain their livelihoods,” Ms O’Keeffe said.
The tax has been increased as part of the Government’s COVID-19 debt levy. The Victorian Government has highlighted that the land tax only applies to investment properties and second homes, and that the family home will remain exempt.
