The Allan Labor Government’s highest property taxes in the country and on-going financial mismanagement are having a negative impact on the Victorian economy, a new report has found.
Released today, the March 2024 NAB State Economic Overview has revealed Victorian dwelling investment was a significant negative contributor to Victoria’s economic growth in 2023, with dwelling investment falling 5.1 per cent across this period.
Furthermore, the report found advertised rents rose 11 per cent over 2023, as the rental vacancy rate remained around one per cent and dwelling approvals decreased in late 2023 and early 2024.
Housing affordability continues to worsen under the Allan Labor Government, with its unfair Rent Tax introduced in mid-2023 an attempt to tax its way out of Victoria’s soaring net debt.
The Allan Labor Government’s inability to manage major infrastructure projects and cost blowouts are having a direct inflationary impact on material and labour costs in the housing market – driving down supply in the midst of a housing crisis.
Shadow Minister for Finance, Jess Wilson, said: “Labor cannot manage money and Victorians are paying the price.
“Labor’s nation-leading property taxes are putting upward pressure on rents and driving critical investment in new housing supply interstate.
“Victoria must be seen as a competitive and attractive place to invest, but the Allan Labor Government’s mismanagement of the housing sector continues to hold back Victoria’s economic growth.”
