The 2025 Victorian Budget has left Victoria's powerhouse property industry at a standstill.
Despite the Victorian Government falling short of its housing targets by more than 20,000 homes, there is still no additional, meaningful support for housing supply in this year's budget.
No plan has been outlined to tackle the punitive taxes that cripple the sector, with government fees, costs and charges already comprising up to 43 per cent of the cost of a new home.
Last week, the property sector welcomed an expansion of stamp duty exemptions for off-the-plan units, townhouses and apartments. However, this measure is simply not enough on its own to bolster the industry.
The Property Council's Victorian Executive Director, Cath Evans, says the 2025 budget does nothing to move the industry forward.
"The industry was hoping for progress - instead, we've hit a stop sign," she said.
"Since last year's budget, we have been loudly advocating for an easing of the tax burden to promote investment, greater support for first homebuyers and feasibility solutions to increase supply. None of this was addressed in the budget.
"The industry is ready to grow, but it can't grow under the current arrangements.
"Taxes have the industry in a chokehold, with a myriad of government fees, costs and charges that have continually increased and stifled investment. The industry urgently needs to see the development of a roadmap to improve project viability moving forward."
Victoria continues to scare away much-needed foreign investment, with extensive levies that see investors looking to less punitive states that deliver a stronger return on investment. Property Council research shows that taxes on foreign investment have resulted in a loss of 81,000 homes, an estimated $93 billion boost to the economy, and nearly 90,000 local jobs.
"We are committed to working closely with the Victorian Government to ensure that property is a focus of the state's economic development. But time is running out to deliver the solutions the industry needs," Ms Evans said.
