The Victorian Greens have welcomed today’s announcement from the Treasurer that the Victorian Government intends to expand the vacant property tax state-wide.
The Greens say it’s a step in the right direction and formed part of what the party has been calling for for years.
However, the Greens say the tax will remain ineffective while property owners are still required to self-declare a vacancy, given so few are currently doing so.
For instance, in the 2019-20 financial year, only 587 properties were declared vacant in Victoria.
This is despite the fact that on census night in Victoria 11.1 per cent of homes, or 300,000 properties, were vacant.
To incentivise owners to rent out or sell vacant property, the tax should be reformed to:
- Increase the rate to three per cent of a property’s capital improved value.
- Increase compliance, with all property owners liable unless they declare occupancy or lease and provide evidence, and strong penalties for false declarations.
The Greens’ policy was based on Vancouver’s successful approach, where homeowners were required to ‘opt-out’ of the tax rather than ‘opt-in’.
An independent Parliamentary Budget Office costing obtained by the Greens revealed these reforms would raise $3 billion dollars over the next decade*.
Leader of the Victorian Greens, Samantha Ratnam, said Australia had more dwellings per adult than at any other time in history, yet affordability was at an all-time low.
She said the Greens’ policy would help alleviate the housing crisis and raise billions for the state.
*This costing was developed under the assumption the tax would be expanded to all of Metropolitan Melbourne, rather than expanding it to the whole state.
As stated by Leader of the Victorian Greens, Samantha Ratnam MLC:
“Expanding the vacancy tax is an important step, but it needs to be properly enforceable.
“By raising the rate to three per cent and making it enforceable, this government could make thousands of homes available to renters or owner-occupiers and help alleviate the housing crisis.”
