Budget relief for investors From: AAP May 30, 2006 PROPERTY investors will find relief in reforms to land tax announced in the Victorian Budget, but home buyers have been ignored, property groups said today.
The Government today announced $167 million over four years in further land tax reform, including capping increases to land tax liabilities for a further year, reducing the middle rates by 20 per cent, cutting the top rate to 3 per cent in 2006-07 and eliminating indexation. But the Budget did not make any changes to stamp duty.
Real Estate Institute of Victoria chief executive Enzo Raimondo said the land tax cuts would assist commercial and industrial investors and make business more competitive.
But Mr Raimondo said some relief should have been given to make housing more affordable.
"Victorian families are paying too much in taxes when they buy a house to live in and this Budget proves it," he said. "Those buying a home are funding the entire $317 million surplus."
"The State Government should deliver on their motto of investing in families by reducing the burden of buying a home." "In the past six years the median Melbourne house price has increased by 105 per cent while the stamp duty payable has increased 179 per cent.
"The nearly 140,000 families that buy a home every year are being ignored."
Victoria's largest residential property management company, RUN Property, said the land tax reforms could encourage more investment in rental properties and help ease a rental shortage.
"Land taxes have had a considerable impact on property investors over the last few years," chief executive Nathan Cher said.
"This is very good news for renters because we are currently experiencing a chronic shortage of rental properties in Melbourne."
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