Excellent session facilitated by Cath Evans, GAICD and Mike Zorbas from the Property Council Victoria at the Sofitel Melbourne On Collins with the Victorian Government Treasurer, Jaclyn Symes.
Our table was impressed that the Treasurer sat down for Q & A from the 200-strong audience; even if there were a few curly ones including one from 'yours truly' on #GDP and #population growth (noting that the Auditor-General isn't an #economist, and there's nothing in his 'tool-kit' that allows him to authoritatively determine whether a particular forecast is 'realistic' or not).
Questions reflected concern across the #property, #planning, and #investment sectors about the #economic and #policy direction, particularly regarding #housing, #taxation, and #infrastructure.
A major theme was the viability of delivering medium-density and infill housing, which is seen as unaffordable without additional incentives.
A recurring issue was the mounting tax burden on property. Stakeholders asking whether the Government will revisit increases to land tax, the #WindfallGainsTax, and foreign buyer surcharges, which are collectively seen as dampening investment and driving capital interstate.
The 4% Additional Owner Surcharge is particularly contentious, with claims it places #Victoria at a disadvantage compared to other states, especially for Build-to-Rent investment.
Concerns also centred on Victoria’s broader economic trajectory and the credibility of the State Budget. Despite a reported $600 million operating surplus, comentators point to a projected $33 billion cash deficit and question how increased revenue from GST and property taxes aligns with continued fiscal deterioration.
Comparisons to the early 1990s are being drawn, with calls to respond to comments from respected economist, Saul Eslake in the The Australian Financial Review.
The CBD and inner-urban precincts remain under pressure, with Melbourne still lagging behind #Sydney in office attendance and retail activity. The recent 70% hike in the congestion levy is seen as counterproductive at a fragile time for these commercial areas, raising fears of further disinvestment.
Concerns also lingered around the rising costs of the Suburban Rail Loop Authority and impacts on funding other critical infrastructure projects.
#HeraldSun – https://lnkd.in/gxkW5dbR
Ben Levin Nathan McKenzie Andrew Lowcock Alexandra Keefe Brad Battin James Newbury Carly Douglas Matt Guy
#million$greenfields are coming
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