The Victorian government has brought forward a new tax as its first initiative since Dan Andrews departed as Premier.
Treasurer Tim Pallas announced the surprise move at an industry breakfast on Tuesday, just one day after the state’s new leader Jacinta Allan unveiled her first cabinet.
“We can’t afford really to have vacant land in metropolitan Melbourne sitting idle for year on year,” Mr Pallas said.“Similarly we’re not putting in place a rule for landowners that we as a state are not going to apply to ourselves. The treasurer said the tax currently collects $6m a year and that this tax would be used to “amend behaviour” as opposed to advantage the budget.
“We’ve looked around the world, we’ve looked in other jurisdictions, and the evidence shows that they don’t work,” Ms Allan said.“The issue that is causing rental increases is an issue of supply.”
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