The so-called windfall gains tax introduced by Labor in Parliament today is really just a brand new tax on family homes.
The terrible fact is Labor’s new tax will make homes for young families more expensive, particularly in regional Victoria, but also in many Melbourne suburbs.
The massive new tax, Labor’s 39th new tax since coming into office in 2014, will simply make housing less affordable for everyday Victorian families.
The new tax will also hit jobs in the building and construction sector where more than 300,000 Victorians are employed.
The tens of millions of dollars will be taken straight back to consolidated revenue with no guarantee it will be spent on projects or infrastructure in the areas where the money is collected.
There is no doubt the new tax will make many developments less viable and some developments unviable, constraining the supply of land for housing and further increasing the price.
This year Daniel Andrews and Tim Pallas plan to collect $6.710 billion in stamp duty, but will collect much more in other property related taxes with around half of state tax collections coming from property, building and construction.
This tax will apply in the whole of regional Victoria and all of Melbourne including the middle suburbs except the growth areas which already have special Labor taxes.
After six devastating lockdowns, Victorian families don’t need new taxes and charges. Our state needs a positive plan to reopen, recover and rebuild and only the Liberal Nationals will deliver that.
Comments attributable to Shadow Treasurer, David Davis:
“This cruel tax on family homes will compound the massive cascade of taxes collected from families by Daniel Andrews and his Treasurer.
“This new tax is despite Daniel Andrews’ promise in 2014 that Labor would not increase taxes or introduce new taxes.
“Labor’s construction and major project blowouts are gobbling up taxpayers’ money and, as a consequence of Labor’s mismanagement and incompetence, this new tax is being forced on Victorian families.
“Just when Victorians are moving into regional Victoria, with impetus from COVID-19, Daniel Andrews slaps on a new tax.”