The Coalition would revive dumped planning reforms that would have cut red tape for the housing sector if elected in the Victorian state election, shadow treasurer David Davis said in his budget reply speech.
But the opposition’s package would not include a levy on new developments to fund the construction of social housing, as was proposed by the Andrews government and quickly walked back after an industry backlash.
Shadow treasurer David Davis and opposition leader Matthew Guy in December.Credit:Joe Armao
The government had proposed a 1.75 per cent tax on building projects with more than three dwellings to support new social housing. The Property Council wanted a tax rate closer to 1 per cent, while other major groups, did not support the tax at all and said they were blindsided by it.
Treasurer Tim Pallas – who handed down his eighth budget on Tuesday, with a $12 billion focus on fixing the healthcare system ahead of the November 26 state election – pulled the entire reform package off the table after he said the industry was not prepared to share its profits from the streamlined process, which was expected to add $7 billion in economic activity within a decade.
The opposition always rejected a new tax on the building industry to help address the housing shortfall.
There were more than 55,000 people on the government waiting list for housing at the end of last year.
Giving his budget reply speech at Crown Palladium on Thursday, Davis said the planning reforms, excluding the social housing levy, would be introduced to parliament within three months of a Coalition government coming to power.
“I make a commitment today, the Liberals and Nationals will implement these reforms where Labor failed,” Davis said. “It will make housing more affordable.”
Davis said the 1.75 per cent housing levy on subdivisions, which he described as a big new housing tax, should never have been linked to the planning reforms.
The government argued the planning changes would deliver billions of dollars in extra profits and that it was fair and reasonable for developers to help pay for social housing.
“I am not in the business of creating super-profits for developers if they are unwilling to support sharing those profits,” Premier Daniel Andrews said at the time.
The opposition also committed to establishing a Victorian Productivity Commission within 60 days to provide independent advice if elected.
Productivity commissions exist both federally and in NSW, but the Victorian Competition and Efficiency Commission was abolished in 2015.
“Victoria cannot afford to be left behind in the productivity race. We need to carefully and independently examine the steps we can take,” Davis said.
“The Liberals and Nations will, through the Victorian productivity commission, actively pursue productivity enhancing reforms.”
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