The Property Council of Australia has today welcomed the Victorian Government's revised structure plans for the six Suburban Rail Loop (SRL) East precincts, but warned success relies on removing development-killing taxes.
Property Council Victorian Executive Director Cath Evans welcomed the SRL's progress in enhancing transport precincts but said the government's burdensome tax regime remains a severe barrier to development.
"We support the government's Housing Statement agenda, but as it stands these new initiatives will not translate into the widespread housing supply needed," Ms Evans said.
"Victoria's uncompetitive property tax regime will keep investors clear of these precincts.
"Whilst we support transit-related development such as the SRL, the industry continues to face significant and increasing difficulty getting projects to financially stack up.
"Unless the state's costly, unwieldy and investment-repelling tax regime is reformed, attracting investors to these precincts will only get harder," she said.
Polling released by the Property Council of Australia in September highlighted voter support for policy options targeted towards increased affordability and the delivery of new housing.
The polling, of more than 1,500 Victorians found that nearly half of voters thought property taxes and charges are the major drivers of unaffordable housing and a lack of supply.
"We expect these precincts will rely heavily on foreign capital - however, research released by the AEAS made it very clear that Victoria is not a destination of choice due to the tax burden for foreign investors," Ms Evans said.
"We are calling on the government to implement the economic reforms outlined in the Property Council's pre-budget tax submission. Without long-term structural change to boost investor confidence in Victoria, SRL East precincts will only be a plan on paper," she said.
