More Affordable Housing for Victorians Continues to Be a Priority
The stability of a home is something everybody should have but unfortunately is quite difficult to get these days. Several issues are at play when buying a home. Although it is, of course, a human right, it’s not something that can easily become accessible. Owning one can be difficult to achieve, but at least rental homes are the next best thing. However, if these homes are not available for everyone, especially for those who cannot afford them, homelessness could become a reality for them.
The Victorian Government has been doing its best to start initiatives to ensure more people of a stable home. We all know that homelessness has been a huge problem in many countries and with the events from last year, there’s uncertainty in every aspect. But it’s a good thing that the government is making efforts to support those who need it the most.
Here’s some new information about the initiative and reform that passed the Victorian Parliament on November 18th. These initiatives are designed to benefit the community long-term.
Build to Rent Scheme
The Build to Rent Scheme has provided a different approach to residential housing. This scheme was designed so properties in development will be held for rental over the long term. Developments that are considered eligible that are completed and operational from the 1st of January 2021 up to December 2031 will be granted to percent land tax discount with full exemption from the Absentee owner Surcharge for up to 30 years. The report was made recently on the Premiere of Victoria website.
In addition, the Legislative Council also passed the Windfall Tax Gains. This means that the significant value increases from rezoning decisions will be released for more transparency to all Victorians. According to the same report, “The total value uplift from a rezoning decision will be taxed at 50 percent for windfalls above $500,000, with the tax phasing in from $100,000 – ensuring most landholders of rezoned land won‘t be affected.”
The tax exemptions include residential houses and lot, holiday homes, and investment properties. Increases in property value will be a separate thing and would not enjoy such tax exemptions. The new system will also mean that developers will have to pay taxes on properties that will see a rise in value after rezoned plans are mapped out. Victorian communities will be able to share the profits from this that can be used as funds for whatever services and infrastructure these communities need.
There has been a need for a fairer tax system in order to encourage more investors to put their confidence back in the system as well as ensure that the profits all land bankers get will be shared with the community.
Additionally, a new report has shown the Regional Victoria there’s a new record low in unemployment which is certainly good news. The government has been firm about the role of the construction industry in creating more jobs for the community. With fairer tax systems and the booming building industry, the future looks brighter than ever.