Victorian budget maintains status quo for property sector, but REIV says opportunity missed for long-term investment incentives

The Real Estate Institute of Victoria (REIV) has labelled the 2024-25 Victorian State Budget a status quo budget for the property sector, saying this is welcome news in the context of a steady flow of new taxes on owners and investors since 2021.

However, the peak body said the Government has ignored an opportunity to implement measures aimed at attracting long-term investors to Victoria’s property sector, which it says will be crucial in meeting the Government’s Housing Statement objectives of delivering 80,000 new homes per year.

In its 2024-25 Budget Submission, the REIV recommended the Government consider reconfiguring the state’s property taxation regime to incentivise investors, including introducing tax incentives for rental providers supplying long-term rental stock, a comprehensive review of stamp duty, and the retention of negative gearing in its current configuration.

REIV President Jacob Caine said this year’s budget maintains status quo for Victorian owner-occupiers, investors, renters and the real estate industry.

“The Allan Government’s first budget offered nothing substantive for the property sector, which in some ways is a positive given the heavy lifting property owners have performed in recent years,” Caine said.

“However, in the midst of perhaps the most acute housing supply and affordability crisis this state has ever experienced, this is a missed opportunity.”

Caine said Victorians need policies and initiatives from their government that address the immediate housing needs of the community, with policies that encourage investment in property essential for better utilisation of the existing housing ecosystem and having a real and immediate impact on the housing crisis.

“Unfortunately, we didn’t see that in this budget,” he said.