The Property Council has voiced its concern around the State Government's decision to introduce a new infrastructure contributions system to all planned Train and Tram Zone Activity centres as of 2027.
The property sector has consistently affirmed that any reforms to infrastructure contributions schemes need to be accompanied by meaningful tax relief, otherwise it will lead to an increase the cost of delivering new homes.
Property Council Victorian Executive Director Cath Evans said that this is another example of the government failing to listen to industry.
"While a clearer infrastructure contributions framework provides consistency, introducing these charges without any meaningful tax relief will not deliver more homes in the current economic climate," she said.
"The sector has been clear that adding costs in areas that have never had infrastructure contributions applied to them before will slow down projects, not enable them."
"The government is calling for more density in well-located areas, yet this policy makes achieving that density even more difficult.
"Project viability is already strained, and positive planning reforms alone cannot overcome outdated tax settings and increased charges.
"We've already seen apartment completions slow significantly in recent years, with FY2025 completions levels at 30 per cent less than previous years. Additional charges will only worsen these figures.
"If Victoria wants more homes, these infrastructure contributions changes must be matched with serious tax reform that supports feasibility and encourages investment."
