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The Real Estate Institute of Victoria has called on the Victorian government to enact property tax reforms amid the 2025–26 state budget, focusing on reduced stamp duty and land tax burdens on rental providers.
The Real Estate Institute of Victoria (REIV) is urging the Victorian government to implement property tax reforms in its upcoming 2025–26 Victorian state budget to tackle ongoing housing supply challenges.
REIV reported significant changes in the Victorian rental market due to ongoing supply shortages and rising rental prices.
The peak body indicated a 3.55 per cent decrease in rental bonds held by the Residential Tenancies Bond Authority, equating to a loss of 24,000 bonds between March and September 2024.
Noticing a trend of investor withdrawals and an increase in short-stay rentals, REIV members have developed a submission to strengthen the state's long-term rental market.
REIV’s submission addresses concerns over rising costs and complex regulations exacerbating supply shortages and driving up rental prices.
The submission lays out five specific tax and regulatory policy recommendations to attract and retain investment in the property sector and establish a more sustainable rental market for renters and investors.
REIV’s chief executive officer, Kelly Ryan, noted the key priority of the five recommendations is decreased stamp duty and land tax burdens on rental providers.
“At the heart of our submission is the need to ensure a more balanced tax and regulatory regime that includes adequate incentives for rental providers,” she said.
Additionally, the peak body recommended realigning property management responsibilities between renters and rental providers to encourage longer lease agreements extending beyond five years.
Ryan said longer lease agreements guarantee greater security, as seen in international rental markets.
“In drawing on comparable international rental market settings, our submission recommends incentivising extended long-term leases to enable renters and rental providers alike to benefit from the greater security they offer,” Ryan said.
“If the Victorian government is to succeed in fulfilling its critical mandate of improving the state’s housing supply, better-enabling property sector investment is paramount.”
Ryan said the state budget indicates a pivotal opportunity for the Victorian government to modify property sector tax settings to effectively align with Victoria’s Housing Statement goal of building 800,000 new homes by 2034.
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