ON the same day that the State Government launched a new consultation paper on the real estate industry, on Friday it introduced a new affordable housing tax.

Victorians are being urged to have their say on the paper which will review current consumer laws to ensure fair and easy access to the housing market.

Underquoting at auctions, off-the-plan sales and agent conduct will be part of the review of the real estate industry amid affordability concerns.

However, at the same time, the government has also proposed amendments to the Planning and Environment Act 1987 to introduce a social and affordable housing contribution.

The proposed new contribution seeks to grow the supply of social and affordable housing in Victoria.

The opposition said that this is not a contribution, it is a tax and that it will add $20,000 to the cost of an average Melbourne home, to be payable on eligible planning permits from July 1, 2024 onwards.

At the launch of the consultation paper, Consumer Affairs, Gaming and Liquor Regulation minister, Melissa Horne recognised that home buyers are finding it increasingly difficult to enter the market with significant demand and rapid rises in property prices providing more barriers than ever before.

“There has been considerable change in the property market, and this review will ensure our laws are best supporting Victorians to have the fair and easy access to the housing market they deserve,” she said.

The opposition stated that the tax would be 1.75 per cent of the market value of new residential developments of three or more dwellings, or of three or more residential lot subdivisions.

It said that this government is taking Victorians for fools with its latest attempt to spin away its latest tax hit on everyday Victorians.

Housing and Suburban Recovery shadow minister, Ryan Smith stated that this new tax will add thousands to the cost of a family home. 

“No one should be surprised that Labor is introducing yet another tax to fill their ever-growing blackhole of debt,” he said.

“Young and new home buyers will ultimately bear the burden of this tax.

“How is that fair?”

Darren Groves of Groves Real Estate in Hamilton said, “at the moment in Hamilton and surrounding district, it is old fashioned supply and demand driving the market.”

“While it is good for the vendors, it is proving very challenging for new home buyers to enter the market.”

Rachael Kinna of Southern Grampians Real Estate said that “rental properties are still in high demand with limited supply in Hamilton.”

Elders Real Estate agent in Hamilton, Rosi Egerton said that it is still a strong market at present.

“It was a bit of a frenzy before Christmas,” she said.

“It has calmed down a bit now but there is still really strong enquiry out of the city, as well as local.”

Minister Horne said that everyone has the right to secure and affordable housing and this review will ensure we’re delivering on this for all Victorians.”

“I encourage all Victorians to have their say on how the current consumer laws can be improved to create a property market that is fairer for Victorians,” she said. To have your say on Victoria’s property market, visit engage.vic.gov.au/property-market-review.