2023-11-28
Thousands of extra empty homes across Melbourne could soon be made available as long-term rentals under changes to Victoria’s vacancy tax secured by the Greens.
Amidst the worst housing crisis in decades, the Greens have pushed the Victorian Labor Government to increase the incentive to release empty homes as rentals by increasing the state’s vacancy tax from 1% to 3% for homes that are unused for more than three years.
The Greens have also secured a trial of a new system of enforcement across metropolitan Melbourne so that all empty home owners will be required to pay rather than avoid the tax.
Wealthy investors are currently keeping homes empty while Victorians experience record levels of housing stress and homelessness.
The Greens say the wins they have secured would help countless renters struggling to find a secure, affordable home and drive down rents.
These reforms – which Labor will bring before the Upper House this week – follow months of pressure by the Greens for stronger action on the worsening housing crisis.
Last month, the Victorian Labor Government introduced proposed changes to the state’s vacancy tax.
The bill marked the first piece of Labor’s housing statement to come before Parliament.
However, the changes were crumbs at best, and the Greens said they wouldn’t be able to support them with their deciding vote in Parliament without more meaningful reform.
Leader of the Victorian Greens, Samantha Ratnam, said Labor’s decision to improve the bill in order to secure the Greens’ support for it showed that pressure worked.
The current voluntary vacancy tax in Melbourne has an 18 per cent (900) enforcement rate.
Under the changes secured by the Greens, all 5,000 properties currently estimated to be eligible will be required to make their home available for someone to live or pay the tax.
The changes will also fix part of the bill that originally required wind, solar and battery projects to pay high rates and acted as a disincentive for renewable energy investment in Victoria.
Quotes attributable to Leader of the Victorian Greens, Samantha Ratnam MLC:
“Pressure works.
“Every day this housing crisis is getting worse. We’re seeing renters face unlimited rent increases and struggle to find a rental home.
“With up to 5,000 extra homes freed up as long-term rentals, these changes secured by the Greens will help drive down rents, and mean more people can access a home.
“If Labor wants to continue passing their housing statement through Parliament, they’re going to need to work with us on the kinds of solutions that will fix this crisis.
“That means urgent rent controls, and a commitment to build public and genuinely affordable housing.
“We won’t accept crumbs in a crisis.”
Quotes attributable to Victorian Greens treasury spokesperson, Sam Hibbins MP:
“The Greens went to the last election promising to make housing more affordable and support more renewable energy.
“The government’s original bill would have made the housing crisis worse, and stopped investment in renewable energy and storage dead in its tracks.
“Through our negotiations with the government we have pushed the government to make more homes available for renters and made investment in renewable energy and storage easier. We are delivering.”