Modeling The Impact Of A ​Higher Residential Land Tax

Anna Rue
Anna Rue

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PPG released a detailed economic report, commissioned by ​Victorian property and construction companies, analysing the proposed expansion ​of the Vacant Residential Land Tax.

Our report – which was featured in The Age newspaper – predicted large tax ​increases on property owners, which would discourage property investment and ​home building in Victoria.

PPG’s modeling showed that, under the proposed legislation, the owner of a ​$500,000 block of undeveloped land would pay an additional $6,225 in tax each ​year – an increase of over 260% since 2022.

A property owner with a $1 million apartment listed for sale but not yet sold would ​pay $10,000 in extra tax per year – an increase of nearly 1,500 percent.

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