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Increased land tax by Allan Labor government exacerbating Gippsland housing shortages and impacting rental affordability

Tim Bull condemns the Allan Labor government's heightened land tax, which forces out small investors, worsens housing shortages, and affects rental affordability. He advocates for reforms to encourage investment and tackle the housing crisis.

By news@gippsland - 26th February 2024 - Back to News

Mum and Dad property investors are this year being slugged with greatly increased land tax by the Allan Labor government, which is having a dire impact on the already stressed housing rental market. Gippsland East Nationals MP, Tim Bull, said the new big tax bill will directly result in less rental properties in the marketplace. "In this period of rental and housing crisis, Labor is driving middle income investors out of the sector with its massive tax increases," he said.

Local Labor MP Harriet Shing, as Housing Minister, must act to ease housing strain caused by policies and debt mismanagement, Labor's policies exacerbate housing challenges

Tax impact on housing

Mr Bull said, "Properties are being sold and rents driven up as landlords invest elsewhere. The homes are not being sold to those who are renting or to the homeless, as they cannot afford the purchase prices, so it just makes it harder for families."

"A strong private rental sector is a key component of dealing with housing availability, but this tax is making landlords invest interstate, in the stock market, bonds or another option. Alternatively, if they stay in the market, they pass this additional cost on to renters who can't afford to pay."

"The Allan Labor government also seems to hold the view that those who own a second home are wealthy. This is not accurate. The top 40 occupations of people who own rentals include workers in childcare, the disability sector, aged care, motor mechanics, truck drivers, receptionists, sales assistants, school teachers, nurses and police officers. They have simply chosen to invest in property rather than another option," he said.

Land tax increase

Mr Bull also said, "The government's cash grab includes decreasing the land tax threshold from $300,000 down to $50,000 and it is also whacking owners of properties valued between $300,000 and $600,000 with an annual tax bill that starts at $1,350. Last year the same landlords were charged around $375."

"Talk to any real estate agent and they will tell you landlords are seriously considering their future and when they leave - as they are - it further increases the gap between rental demand and supply."

"Wouldn't it make more sense to say to Mum and Dad investment property owners - if you commit to the rental market for 5-10 years, you will be exempted from these charges? Incentivise them, not punish them," said Mr Bull.

Housing market challenges

To provide an example of the impact of things like the land tax money grab, it was recently reported the CEO of Stockdale and Lego, a major realtor said, "when the land tax change was announced, all our offices across Victoria received calls from landlords saying they wanted out. That article also quoted one landlord selling up and moving her property investment to Queensland, and another selling up and investing in the stock market. It is becoming more common."

"Add into the mix, the federal government has just announced the highest number of foreign students will come into Australia in a decade, with over half a million visas granted. A report by the Institute of Public Affairs found international students took up 70 percent of new housing units in the last financial year and the flood of students coming will further increase pressure on the housing market."

"First National Real Estate chief executive, Ray Ellis, said he feared such a move would result in a 30 percent reduction in rental supply - 'at a minimum'. Then throw in on top of this that we have less public housing in East Gippsland than we had seven years ago and you can see why the housing crisis is hitting so hard," said Mr Bull.

Housing stock reduction

Mr Bull added, "In 2017 we had 933 public housing homes in East Gippsland, that is down to 931. Labor spouts its Big Housing Build and the new homes, but what they don't tell you is that in many areas they are selling off old stock at a quicker rate."

"The Housing Minister is our own local Labor Upper House MP, Harriet Shing, and she needs to act. The housing market is tough, but Labor's policies are making the housing market even tougher as it tries to service the massive debt it has created, which presently includes an interest bill of $15 million per day."

"Ms Shing could start by halting the war on our middle-income landlords and providing a framework that encourages people into property investment rather than pushing them out. This is the outcome of not being able to manage projects or money," concluded Mr Bull.

Pictures from Tim Bull MP Facebook page.

Source: www.gippsland.com

Published by: news@gippsland.com

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  Latrobe Valley small businesses face soaring costs as Labor's new Emergency Services Tax replaces the Fire Services Levy, with Nationals warning it punishes regional communities and fuels insolvencies amid financial mismanagement.
• Two weeks left to join Darren Chester's 2026 #lovegippsland Calendar Competition celebrating iconic Gippsland
  Two weeks remain to enter Darren Chester's 2026 #lovegippsland calendar competition, celebrating Gippsland's landscapes and talent. Entries close October 3, with winners featured among 30,000 distributed calendars showcasing 'Iconic Gippsland'.
• Danny O'Brien slams Labor for decade-long failure to fund replacement CFA stations in Foster and Mirboo North
  Danny O'Brien has criticised Labor for failing to replace outdated Foster and Mirboo North CFA stations, saying volunteers face unsafe conditions despite years of promises and growing community contributions.
• Melina Bath criticised Labor's plan to create new national parks, locking out long-term bush users
  Liberals and Nationals oppose Labor's plan to convert 65,000 hectares into national parks, citing unfair exclusion of bush users despite strong opposition and a 40,000-signature petition against the proposal.
• Danny O'Brien slams Labor for funding maintenance at Sale College instead of new campus
  Danny O'Brien has criticised Labor for allocating $273,175 in maintenance to Sale College, arguing funds should instead deliver the long-promised new consolidated campus the community has campaigned for since 2017.
• Southern Rural Water upgrades over meters across Gippsland to improve accuracy and fair water management
  Southern Rural Water is replacing 1,000+ outdated meters across southern Victoria by 2026, boosting accuracy, compliance, and fair water management under national standards - with no cost to customers.
• David Littleproud urges Labor to deliver interest-free loans as farmers voice urgent drought forum concerns
  Nationals leader David Littleproud says the Drought Forum reinforced urgent calls for interest-free farm loans, urging Labor to act swiftly as farmers face worsening hardship, particularly in South Australia's dairy industry.
• Have your say on key council plans, policies, and the future direction of South Gippsland through current engagement opportunities
  South Gippsland Shire Council invites community feedback on key draft plans, policies, and the 2026/27 Budget, with in-person engagement opportunities and "Coffee with a Councillor" sessions in October.
• Peri Urban Councils advocate for housing, infrastructure, and policy recognition with state government
  Peri Urban Councils Victoria met government leaders at Spring Street, advocating for housing solutions, essential infrastructure funding, and policy recognition to support rapidly growing peri urban communities sustainably.
• Danny O'Brien announces finalised Loch Sport groyne designs, Gippsland Ports to seek tenders before Christmas
  Erosion works on Loch Sport foreshore will begin next year, with designs finalised for new groynes. Danny O'Brien praised the community's persistence and vowed to push for further coastal protection.
• David Littleproud says new mapping reveals Labor's renewables damage, strengthening the call for nuclear energy
  The Defence Honours and Awards Appeals Tribunal has accused the Albanese government of removing veterans' rights to review bravery awards, warning proposed reforms undermine fairness, independence, and recognition of Australia's war heroes.
• Peri Urban Councils urge state government to invest in infrastructure and support housing growth across regions
  Peri Urban Councils Victoria is urging government investment in infrastructure after a new report recommended 40% of new homes be built in regional Australia, highlighting housing demand, high costs, and infrastructure pressures.
• From Job expos to farms and sports awards connecting communities across East Gippsland through events and advocacy
  From jobs expos to farm visits, sports awards, and community projects, recent weeks highlighted East Gippsland's talent, resilience, and collaboration, advocacy, and opportunities that strengthen local communities.
• Cr Nathan Hersey elected as Mayor and Cr Brad Snell as Deputy Mayor for South Gippsland and other council updates
  Councillor Nathan Hersey was elected Mayor and Councillor Brad Snell Deputy Mayor of South Gippsland Shire for 12 months, marking Hersey’s second and Snell’s first term in these roles.
• Tim Bull demands end to brumby shooting as pest and weed control programs face cuts
  Gippsland East MP Tim Bull has urged the state government to scrap its costly brumby shooting program, criticising cuts to pest and weed control services vital for farmers and rural communities.
• Albanese government limits tribunal powers, undermining veterans' rights and restricting reviews of military honours
  The Albanese government has limited the Defence Honours Tribunal, banning reviews of actions over 20 years old, restricting veterans' appeals, and undermining independent recognition of historic military bravery.
• Tim Bull demands transparency on missing $13.15M for cancelled Marlo to Cape Conran pathway
  Gippsland East MP Tim Bull has demanded answers on the missing $13.15 million for the cancelled Marlo - Cape Conran pathway, urging funds be redirected locally if the project is abandoned.
• Tribunal warns Albanese government's bill removes veterans' rights to review bravery awards and undermines Defence Honours system integrity
  The Defence Honours and Awards Appeals Tribunal has accused the Albanese government of removing veterans' rights to review bravery awards, warning proposed reforms undermine fairness, independence, and recognition of Australia's war heroes.
• Darren Chester slams Albanese government veterans medal review limit, undermining Tribunal independence
  Shadow Minister Darren Chester has condemned Labor's legislation imposing a 20-year limit on veterans' medal reviews, arguing it undermines the Tribunal's independence and disenfranchises veterans and families seeking fair recognition.
• Darren Chester slams Albanese government over bill limiting veterans' rights to appeal medal and bravery decisions
  Shadow Minister Darren Chester has condemned the Albanese government's proposed Defence Honours Bill, claiming it restricts veterans' rights to appeal medal decisions and undermines the independent Tribunal's role in recognising bravery.
• Darren Chester tears down Albanese government's 'lazy' plan to cut regional speed limits, urges investment in safer roads
  Darren Chester has criticised the Albanese government's plan to lower regional speed limits, labelling it "lazy" and urging greater investment in repairing and upgrading unsafe roads to reduce fatalities.
• Danny O'Brien welcomes progress on Sealers Cove track repairs but slams years of Labor delays at Wilsons Prom
  Danny O'Brien welcomed long-overdue progress on Sealers Cove track repairs at Wilsons Prom but criticised Labor for years of delays, saying Gippsland deserves timely investment in vital tourism infrastructure and facilities.
• Darren Chester completes 19th Melbourne Marathon, joining 14,500 runners in iconic Gippsland sporting tradition
  Darren Chester completed his 19th Melbourne Marathon, joining 14,500 runners. The sold-out event celebrated fitness and community spirit, with Chester inspired by marathon legend John "Dobbo" Dobson's 47th consecutive run.
• Bass Coast Shire Council urges Victorian government, LSV to ensure lifeguard patrols continue safely, without cuts
  Bass Coast Shire Council urges Victorian government and LSV to guarantee lifeguard patrols, warning proposed funding hike strains budgets while beaches remain high-risk, with recent drownings highlighting urgent safety needs.
• Darren Chester supports Tribunal decision to defend veterans' right, opposing Albanese government plan limiting Acts of Gallantry review
  The Defence Honours and Awards Appeals Tribunal will defend veterans' rights at a Senate inquiry, opposing the Albanese government's plan to impose a 20-year limit on reviewing acts of gallantry.
• Darren Chester commends Mac Waste Group for community commitment and support for Gippsland families
  Darren Chester praised Mac Waste Group for its community commitment, local job creation, youth training initiatives, and support for Gippsland families through its partnership with the Little Jem Foundation and fundraising efforts.
• Darren Chester meets new BRHS CEO Peter Abraham to discuss future opportunities for East Gippsland Healthcare
  Darren Chester met new BRHS CEO Peter Abraham to discuss healthcare challenges, commend local innovations improving patient care, and strengthen collaboration to deliver high-quality, accessible health services across East Gippsland.
• Have your say on the 2027 transition to Pre-Prep and help shape early learning in South Gippsland
  South Gippsland Shire Council is seeking feedback from parents and carers to help shape how the Victorian government's 2027 Pre-Prep program is delivered locally to meet community needs.
• Regional all abilities participation grants is now open to boost inclusive sports opportunities for people with disability in regional communities
  The Allan Labor government's Regional All Abilities Participation Grants offer up to $25,000 for clubs to boost disability inclusion through equipment, training, travel support, and all-abilities sports programs.
• Danny O'Brien warns faulty firefighting vehicles are leaving local CFA Brigades under pressure ahead of bushfire season
  Danny O'Brien has criticised the Allan Labor government for failing to repair faulty firefighting vehicles, warning the issue is placing pressure on CFA brigades and reducing Gippsland's preparedness for bushfire season.
• Spring flows planned to support native fish migration and river health across West Gippsland
  West Gippsland CMA's Environmental Water team is planning Spring river flows to support native fish migration, enhance river health, and balance environmental care with community enjoyment of waterways.
• Farm fencing grants protect 300 hectares of biodiversity and boost waterway health across West Gippsland
  Over 300 hectares of farmland will be fenced through West Gippsland CMA's farm fencing grants, protecting waterways, biodiversity, and livestock while supporting sustainable farming and revegetation across the catchment.
• New drinking fountains installed in Sale and Briagolong Parks to promote health, sustainability and community wellbeing
  Gippsland Water and Wellington Shire Council have installed two new drinking fountains in Sale and Briagolong, promoting health, sustainability, and reusable bottles. Featuring artwork by Gunai artist Alice Pepper, they support community wellbeing.
• New drinking fountains installed in Sale and Briagolong Parks to promote health, sustainability and community wellbeing
  Gippsland Water and Wellington Shire Council have installed two new drinking fountains in Sale and Briagolong, promoting health, sustainability, and reusable bottles. Featuring artwork by Gunai artist Alice Pepper, they support community wellbeing.
• Darren Chester praises Moogji Aboriginal Council for advancing health and sustainability in East Gippsland
  Darren Chester visited Moogji Aboriginal Council in Orbost, praising its vital health, youth, and environmental programs that support East Gippsland communities and promote Aboriginal culture, wellbeing, and environmental sustainability.
• Latrobe City launches investment campaign showcasing strength, innovation, and opportunities across Gippsland
  Latrobe City Council launched an investment campaign showcasing business strength, innovation, and opportunities positioning itself as Gippsland's hub for growth, transformation, and future industries.
• Darren Chester welcomes Minister Catherine King’s confirmation that the Eastern Beach Road intersection remains a priority
  The federal government has increased funding to $6.6 million for the Lakes Entrance road safety upgrade, but Federal MP Darren Chester says state government delays continue to stall the vital project.
• Wellington Shire Council invites open conversations on financial pressures impacting community services, roads, and facilities
  Wellington Shire Council faces rising costs, rate caps, and funding pressures, yet remains committed to delivering essential services and urging government reform to better support regional communities into the future.
• Latrobe Valley households to cut energy bills with efficient electric heat pump hot water system upgrades
  Latrobe Valley households can cut energy bills by $330 annually with efficient heat pump hot water systems, thanks to the Allan Labor government's SEC one stop shop pilot expansion.