Victorians in a state of flux over housing policies

ALMOST seven in 10 Victorians do not believe the government can fix the housing crisis, according to research from the Property Council of Australia.

The Property Council-commissioned Roy Morgan poll of 3863 Victorians found 67.3 per cent are not confident government policies will improve housing affordability for future generations.

Almost two-thirds (64.3 per cent) believe Victoria is not building enough homes to meet demand, while 63.9 per cent say housing issues and property taxes will be significant in deciding how they vote at November’s state election.

§ Victorians support housing tax reform

The data shows that Victorians are in favour of broad tax reform to encourage new housing supply, with 49.9 per cent supporting reduction of stamp duty, 38.1 per cent supporting reduced land tax and 36.2 per cent supporting reduced land tax.

It comes a week after polling revealed that over four in five Victorians blame the Victorian Government’s 32 new and increased property taxes since 2014 for high housing costs.

§ Housing promises fail to inspire public confidence

Matthew Kandelaars, Property Council group executive policy and advocacy, said the findings exposed a damning gulf between the Victorian Government’s housing promises and the public’s confidence in their delivery.

“Victorians have been force-fed a diet of housing promises and little more,” Kandelaars said.

“Two in three Victorians have little confidence that government policies will make housing more affordable. That is a warning light flashing bright red.

“Almost two-thirds of Victorians polled believe we’re not building enough homes and can see the massive gulf between what they’re being promised and what’s actually being delivered.

“With the past decade’s punitive tax gouge hurting supply and demand in a vicious double whammy, another generation of aspiring homebuyers is wondering whether they’ll ever get a key in the door."

§ Urgent action to restore buyer confidence and investment

Kandelaars said the state’s housing crisis demanded urgent action to restore buyer confidence, attract investment and get stalled housing projects moving.

“This week’s ABS approvals data shows a 28.9 per cent drop in housing approvals, highlighting a market under pressure," he said.

“Every approval that isn’t backed by investment, finance and actual construction is just another number on a government flyer.

“No buyers means no projects. No projects means no homes. And no amount of political spin can change that.”

§ Calls for housing tax relief and demand-side stimulus

Kandelaars said the findings reinforced the urgent need for housing tax relief and demand-side stimulus, including:

• Abolishing the supply-killing Absentee Owner Surcharge in full, which penalises Australian builders who partner with capital from overseas, including Dutch or Canadian pension funds, to build Australian homes;

• Abolishing the Windfall Gains Tax, which the Property Council argues discourages the rezoning and development of land for new housing; and

• An immediate housing stimulus package to support Victorian homebuyers, including eliminating stamp duty on all new builds, introducing a $25,000 downsizer bonus and increasing the first-homeowner grant to $20,000.

“We need to get buyers back into the market, investment flowing and builders back on site," Kandelaars said.

"That means urgent demand stimulus and scrapping the taxes that make new housing projects harder to deliver.

“Victorians don’t need another ribbon cutting but a credible plan that cuts taxes and actually gets homes built."