By Matthew Sims
Rental affordability, land tax and the upcoming state budget were the hot topics of the Victorian Liberal Party when they visited the Cardinia Cultural Centre earlier this week.
Pakenham was the latest stop in regular regional Shadow Cabinet meetings on Monday 25 March, with Opposition Leader John Pesutto, Shadow Attorney-General Michael O’Brien, Eastern Victoria MP Renee Heath, Berwick MP Brad Battin and other opposition spokespeople and MPs among the attendees.
The meetings with the South East community included presentations from Cardinia Council chief executive Carol Jeffs, mayor Jack Kowarzik and governance, facilities and economy acting general manager Dana Harding, Women Making it Work chair Khatija Halabi and membership director Aloyna Taylor, SJD Homes owner Simon Dunstan and sales manager Rod Fitzsimmons and All About Rentals estate agent Toni Pirani.
Cr Kowarzik said the meeting was an opportunity to push for funding support from the Opposition for a number of key infrastructure projects, including upgrades to Thompsons Road and Cardinia Life.
Nationals leader Peter Walsh said the meeting was a positive opportunity to hear from local voices.
“It’s about talking to the community,“ he said.
Mr Walsh said the main issue highlighted was housing affordability and land tax, as well as the upcoming state budget.
“Rental affordability is a huge issue everywhere,“ he said.
Addressing the community members and Shadow Cabinet members, Mr Pesutto said the Liberal-Nationals Coalition were aware that the South East were undergoing “enormous pressures“ due to “exploding“ population numbers.
“We understand that the future of our state involves a whole-of-state vision,“ he said.
“We’ve had some very productive discussions.
“We’re here today because we know you need support.“
With up to seven new families entering the region every day, Mr Pesutto said it was important for the region to co-operate, with welcoming the Shadow Cabinet a step towards that goal.
“I think we’re the only ones who are hearing you,“ he said.
“We’re keen to keep working with you.
“Please continue to work together.“
South-Eastern Metropolitan MP Ann-Marie Hermans echoed Mr Pesutto’s words of support for those struggling with the current financial situation.
“This is an area of growth and an area of need,“ she said.
“You’re doing it tough.“
Mr Dunstan said the rental market in the South East was becoming “dire“ for both renters and property owners.
“So many people are finding they can’t hold on to their investment property,“ he said.
“I expect in six to 12 months, there will be a massive shortage.
“It’s getting harder and harder.“
According to SJD Homes’ presentation, they have seen a more than 50 per cent reduction in the number of new home sales/builds for investment since the pre-Covid peak.
Mr Dunstan said housing affordability was also becoming a significant issue for those wanting to enter into the investment market, with issues around high interest rates, high build costs, onerous compliance and a sense of losing control over their property leading many landlords to indicate they would soon exit the market.
“There’s not a lot of new investors,“ he said.
“The supply is not there.“
According to SJD Homes’ presentation, March 2023 saw a 16.7 per cent decrease in new rental listings compared to the same quarter in 2022, while in May 2023, 51.8 per cent of new sale listings were previously
rental properties, representing a 13.9 per cent increase compared to 2022.
Based on a land value of $450,000, SJD Homes’ analysis found land taxes have increased by $1125 since last year, adding an additional $21.63 a week to the cost of owning an investment property.
Mr Dunstan said SJD Homes were among local builders calling for the State Government or the Opposition to consider cutting back land tax in order to force rental prices downwards.
“They should be trying to incentivise people to stay in the rental market,“ he said.
