Joint Statement - Labor's property tax hike: secret cost increase on homes

Joint Statement – Labor’s property tax hike: secret cost increase on homes.

Richard Riordan, Shadow Minister for Planning

James Newbury, Shadow Treasurer

The Allan Labor Government has been caught out lying to Victorians and the development industry, secretly increasing its developer bond scheme from a promised 2 per cent to 3 per cent in legislation introduced to Parliament.

Shadow Treasurer James Newbury slammed the government for its dishonest approach, warning that this 50 per cent cost increase would further drive-up home prices and make housing even less affordable. 

“The Government has lied to industry and to Victorians—having introduced new laws into Parliament that will cost 50 per cent more than what they announced,” Mr Newbury said.

“On large-scale residential projects, a 50% increase on what was promised will add millions of dollars in cost.”

“Labor already has the highest taxes on property in the country, and now they’re sneaking in another cost that will make housing even more expensive.” 

The developer bond scheme, initially sold as a 2 per cent requirement, was presented as a way to protect home buyers from construction defects. Instead, Labor’s bill has quietly increased it to 3 per cent, blindsiding the industry and adding another layer of cost to an already struggling housing sector. 

Shadow Minister for Planning Richard Riordan said the Allan Government’s habit of making up policy on the run is killing housing investment in Victoria. 

“Developers are already walking away from Victoria because of excessive taxes, planning delays, and government interference—now Labor is adding another hidden cost that will make projects even harder to deliver,” Mr Riordan said.

“This government is making decisions that will change the look, feel, and character of Melbourne for years to come, yet they can’t even be honest about the costs of their own policies.” 

Victoria is already facing a housing crisis, with developers warning that projects are becoming financially unviable under Labor’s tax-heavy approach. Instead of cutting red tape and incentivising new housing, the Allan Government is driving up costs and worsening the supply shortage.

The Liberals and Nationals will continue to hold Labor to account and push for real solutions to Victoria’s housing crisis—solutions that make it easier, not harder, to build more homes.

Richard Riordan, Shadow Minister for Planning

James Newbury, Shadow Treasurer