Levy idea ‘to hit home’

By Cam Scott and Alison Noonan
YOUNG couples and families looking to buy a new home in Casey would be “crucified” if a $30,000 State Government services tax on land in new housing estates is introduced.
That’s the view of Les Donaldson, the former director of the Real Estate Institute of Victoria and owner of Narre Warren real estate agency Donaldson Martin.
Mr Donaldson’s remarks came in response to comments from shadow state treasurer Robert Clark who this week hit out at suggestions in a recent Smart Growth Committee report to State Planning Minister Robert Hulls that floated the idea of the $30,000 levy.
Mr Clark said such a tax would be a massive burden to young Casey families trying to buy a new home.
“This new tax would make it almost as hard to buy a new home in Casey as it is in Sydney and would make the great Australian dream of owning a home unattainable for thousands of young families,” he said.
Mr Donaldson said that although the ramifications of such a tax could prove to be horrific to new homebuyers, he would be amazed if such a tax were imposed.
“I can’t see it happening. I think they’re just trying to gauge community reaction,” he said.
“I believe it’d be detrimental. People just wouldn’t buy blocks. It’d just make it out of their league. It would crucify ordinary battling people trying to own their own property.
“I’d be staggered if they brought it in. I just think it’d be so detrimental for the opportunities of ordinary working men and women to buy a home. I just don’t believe any government with credibility would do it.”
State Government spokesperson Melissa Arch said: “At this stage it’s a nonissue and there is no reason for concern from any quarters. There is no proposal before the State Government for a $30,000 levy, it’s not State Government policy. There is no State Government policy in relation to this.”
Opposition leader Robert Doyle visited Casey this week and said that if the tax were imposed, young people especially would be further excluded from the housing market.
“The growth in Casey is just remarkable. We should be encouraging young people to get into their own homes,” he said.
“This will keep young people out of those houses and will depress the housing market.”
Director of McDonald Real Estate in Dandenong, Mark Richardson, said the established housing market may benefit from such a tax, although it would be likely to hurt the chances of people looking to move into a newly built home in areas they service such as Endeavour Hills.
“You’d potentially be pricing your first homebuyers of new homes out of the market,” he said.