This week, the Victorian State Government has scrapped their newly proposed social housing levy earmarked for July 2024. The Andrew’s Government planned to introduce the levy on residential developers building three dwellings or more or greater than 3 lot subdivisions. The 1.75% contribution was set to fund the creation of 1700 new social and affordable housing each year.
The proposal was met with criticism from the building sector and building lobby groups raising concern that the cost of the levy would be passed on to home buyers, increasing house prices even further. In media comments, industry leaders raised issue with the levy stating that it could have an unintended increase in house prices upwards of $10,000 to $20,000, putting an even bigger strain on first home buyers, in particular, trying to get into an already difficult market. Master Builders Victoria also raised issue stating that the Victorian housing sector was already over-taxed and that such a levy could hurt the entire sector.
The Housing Minister, Richard Wynne, hit back at criticism saying that it was an investment and stable funding stream, providing housing to thousands of Victorians in need. Other economists have said that it was a good way to ensure the creation of new social housing rather than it be mandated as a certain proportion of commercial projects.
Regardless, the Treasurer, Tim Pallas, confirmed the tax and adjoining reforms would be dumped after meeting with sector leaders on Monday.
Whether you are a first home buyer or an investor, Chamberlain Property Advocates can help you with every step of the buying process. It pays to have an advocate in your corner. Ask us how we can help.
We do offer our negotiate service for those buyers in the market looking to pounce on opportunities that arise. Get in touch if you’d like to know more.
Ask about our Home Buyer Search and Acquisition Service, where we do all of the legwork on your behalf to MAKE IT EASY to secure your new home.
Give me a call on 03 9686 2288 to discuss how I can help. I offer a free consultation, so why not call today?
By Wendy Chamberlain
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With a passion for all things real estate spanning over 20 years, Wendy loves that her role as a Buyers Agent or Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.chamberlainadvocates.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.
