State Budget provides opportunity for taxation reform
BENDIGO’S residential Strategy will be reviewed because of greater than expected growth.
The State Government has announced a grant of $50,000 to carry out the review.
The review is needed because, according to the State Government, 40 per cent of the forecast growth between 2006 and 2031 had already been realised.
Regional Development Parliamentary Secretary Damian Drum made the announcement this morning.
Mr Drum said the Bendigo Residential Strategy Review would deliver greater community and investor certainty, helping the region grow.
“The Bendigo Residential Development Strategy was adopted in 2004 and is currently being audited because of the faster than anticipated growth that has occurred in Bendigo in recent years,” he said.
“Strong residential growth has many flow-on economic benefits and having a clear framework for future development will position Greater Bendigo City Council to undertake more detailed, place-based planning in the future.”
Deputy Premier Peter Ryan said about 40 per cent of the forecast growth between 2006 and 2031 had already been realised.
The Residential Strategy impacts directly on where and how property developments use “infill” parcels of land, range of housing styles and also on housing affordability.
“This project will review the strategy, assess current and estimated land supply and demand and consider various legislative and policy changes,” Mr Ryan said,
“It will also consider the latest demographic data and establish a new strategic framework to guide the long-term residential growth of Greater Bendigo.
“The project will result in a revised residential strategy that will give developers, the community and service providers greater surety and confidence about where land can be developed for residential purposes, and that sufficient land is available to accommodate the City of Greater Bendigo’s future growth.”
Mr Ryan said a contemporary strategic planning framework was essential to the economic development of a large regional centre like Bendigo.
“Clearly identifying future growth options and supporting infrastructure needs will enable the Greater Bendigo City Council and other infrastructure providers to plan their capital works programs well in advance,” he said.
“Identifying long-term growth areas will enable the council and other service authorities to start planning for the delivery of services, thereby minimising the lag time between when residential development occurs and when the services need to be in place.”
Bendigo Weekly | Bendigo Weekly | 20-Mar-2012
The
REIV has released its State Budget submission for 2012–13,
highlighting a need to continue state-based tax reform, assist first
home buyers and reduce taxes to promote investment in Victoria.
REIV
CEO Enzo Raimondo said that, with stamp duty revenues reducing due to
the slowing economy, it was timely to reform the structure and level
of property taxes to improve equity, remove double taxation and
promote investment.
The
current structure of property taxes in Victoria is inefficient and
discourages the necessary investment in housing and commercial
property.
Residential
home buyers are subject to bracket creep when prices rise, leading to
an increasingly high level of taxation. This not only results in a
higher level of stamp duty for every dollar spent on a home but also
discourages people relocating.
An
anomaly of the tax system is that investors are subject to higher
stamp duty at the same time as the community relies on them to
provide the majority of rental homes.
Another
anomaly is that when a buyer spends $550,001 rather than $550,000 on
a home, they pay an extra $3,100 in duty. There is no sensible reason
for that.
The
REIV also applauds the focus on assisting all first home buyers
through cuts to stamp duty and encourages the government to continue
the program, even extending it if Budget constraints permit.
It
is also clear that the policy aim of the Bonus – boosting the
construction of new homes – has been met, making it unnecessary to
provide additional funding for the program at this time.
Equalising
assistance for all first home buyers will provide them the choice
about where to live, rather than encouraging them only into new
homes.
It
is also high time for the levying of stamp duty on GST in
non-residential transactions to cease. When an office block,
warehouse or factory is purchased, the new owner has to pay GST on
the purchase itself and then stamp duty not only on the value of the
property but the GST component as well.
This
anomaly has been in place since the GST was introduced and it is time
it was corrected.
Enzo
Raimondo
CEO
REIV
BENDIGO’S residential Strategy will be reviewed because of greater than expected growth.
The State Government has announced a grant of $50,000 to carry out the review.
The review is needed because, according to the State Government, 40 per cent of the forecast growth between 2006 and 2031 had already been realised.
Regional Development Parliamentary Secretary Damian Drum made the announcement this morning.
Mr Drum said the Bendigo Residential Strategy Review would deliver greater community and investor certainty, helping the region grow.
“The Bendigo Residential Development Strategy was adopted in 2004 and is currently being audited because of the faster than anticipated growth that has occurred in Bendigo in recent years,” he said.
“Strong residential growth has many flow-on economic benefits and having a clear framework for future development will position Greater Bendigo City Council to undertake more detailed, place-based planning in the future.”
Deputy Premier Peter Ryan said about 40 per cent of the forecast growth between 2006 and 2031 had already been realised.
The Residential Strategy impacts directly on where and how property developments use “infill” parcels of land, range of housing styles and also on housing affordability.
“This project will review the strategy, assess current and estimated land supply and demand and consider various legislative and policy changes,” Mr Ryan said,
“It will also consider the latest demographic data and establish a new strategic framework to guide the long-term residential growth of Greater Bendigo.
“The project will result in a revised residential strategy that will give developers, the community and service providers greater surety and confidence about where land can be developed for residential purposes, and that sufficient land is available to accommodate the City of Greater Bendigo’s future growth.”
Mr Ryan said a contemporary strategic planning framework was essential to the economic development of a large regional centre like Bendigo.
“Clearly identifying future growth options and supporting infrastructure needs will enable the Greater Bendigo City Council and other infrastructure providers to plan their capital works programs well in advance,” he said.
“Identifying long-term growth areas will enable the council and other service authorities to start planning for the delivery of services, thereby minimising the lag time between when residential development occurs and when the services need to be in place.”
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