A fortnight ago, the Victorian government announced that it would impose an $800 million levy on property developers to fund social housing.
From 1 July 2024, a 1.75% levy was to apply to new Victorian developments of three or more dwellings and lot subdivisions of three or more. The levy would then fund up to 1,700 houses a year.
Premier Daniel Andrews said the government consulted extensively regarding the proposed levy, adding that the property development industry agreed to support the policy in return for an overhaul of the state’s planning system. However, the Urban Development Institute of Australia and other developer lobbies hit back hard claiming the levy was not part of discussions with the government regarding planning reforms. The industry instead wanted social housing to be funded via a broad-based tax.
