“We’ll help Renters” – Victorian Budget builds more for private development
24.11.2020 FOR IMMEDIATE RELEASE
Renters And Housing Union strongly supports an increase in housing supply, but not at the expense of public resources.
In today’s budget speech, Treasurer Tim Pallas announced the Victorian Government will “help renters by providing 50% land tax discount from 2022 – 2040 to attract new investment in build-to-rent developments”, yet public housing is losing out this year, with a total of 1100 old public housing units being replaced by new homes run by social housing agencies, further privatising pre-existing public housing stock at the expense of the most vulnerable residents.
The “Big Housing Build” commits over $6 billion, yet the overall supply of public housing isn’t increasing, while an impressive commitment it will make a small dent in the 100,000 long public housing waitlist. The ‘Making Housing More Affordable’ for renters is to subsidise 5,000 build-to-rent homes, with funding going straight to private developers.
With COVID19 restrictions easing, homelessness is set to spike over the holiday season. This budget does not address how Victoria will support housing the increasing number of homeless people currently being exited from emergency accommodation.
RAHU strongly supports an increase in housing supply, but not at the expense of public resources.
Private developers and landlords are again the first to profit in this budget; renters and people in precarious housing need to see a commitment from the Government to fund public housing and stop the private sector rort.
Quotes attributable to: Eirene Tsolidis Noyce, Secretary, RAHU Vic
This is a record breaking amount of public funding for housing, let’s not see it go to waste funding private developers
As renters we have experienced the effects of an unregulated rental system – further public funding to private gains must come with regulations, or see further shortcuts by developers for their profit and at our expense.
With public funds going to private gain, it is hard to believe that the billions invested in private development will trickle down to renters.
There was no mention of ‘homelessness’ in the treasurer’s speech, we were left wondering if rough sleepers will be left out in the cold this year. – Holly Jones, Renter and RAHU Member
The funding announced:
For Property Developers
- $111 million “critical to unlocking private sector investment”
- 50 per cent land tax discount for eligible new developments until 2040
- These developments will be exempt from the Absentee Owner Surcharge
- Subsidising 5000 build-to-rent homes.
For landlords and homeowners
- Tax relief on stamp duty for residential property of up to $1 million
- Tax waivers of 50% for new residential properties, 25% for existing residential properties
Media contact: Jesse James Francis: 0401 164 876 or email [email protected]
The Renters And Housing Union (VIC) is a member-run Union of renters and people in precarious housing, formed out of the rent strike as a response to the COVID19 crisis. We collectively organise for the right to safe and secure housing through self-advocacy, education, and frontline eviction defence.
Find out more and join RAHU https://rahu.org.au
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