Michelle Bennett, KPMG State Taxes Partner, said:
“The Victorian government has swapped the sledgehammer it wielded when imposing significant tax surcharges on overseas buyers for a housing affordability scalpel, in a more targeted and policy-based tax reform.
But there are risks in reducing off-the-plan concessions for investors, as it could put the brakes on new residential development. That would run counter to the purpose of a ‘vacancy tax’ in driving rental availability.
Details of the anticipated exemptions for the vacancy tax will be critical in ensuring that revenue projections - and stock increases - are actually realised.”
Senior Communications Manager, KPMG
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