The Victorian State Government has decided to no longer proceed with proposed reforms to the property and development sector, following criticism from industry groups and local councils.
The plans, which the State Government said would “cut red tape, slash approval times by speeding up planning processes, support local councils, create jobs and bolster construction,” were criticised by the Eastern Region Group of Councils — which includes Knox City Council and Yarra Ranges Council — because it would exempt the State Government from paying rates on social housing properties.
Knox City Council Mayor Susan Laukens said the ratepayers of Knox were being asked to pick up the bill for services the state government was responsible for.
“There is a critical shortage in social and affordable housing, and the Victorian Government should be commended for finally taking action to address the historic underinvestment in social housing,” Cr Laukens said.
“But this policy is short-sighted. The needs of people accessing social housing don’t just end with a roof over their heads. They need ongoing support from local services which are funded by rates.”
The State Government argued the package would have delivered $7 billion in benefits and created tens of thousands of jobs over the next 10 years.
Several industry groups spoke out against the proposed reforms which, combined with opposition from local councils, resulted in the State Government taking all three components of the package of reforms “off the table.”
Minister of Housing Richard Wynne said the proposed reforms would have provided Victorians with the dignity of housing.
“Our landmark Big Housing Build is changing lives, but this would have delivered thousands of more roofs over the heads of Victorians in need,” he said.
“The property and development sector has chosen an extraordinary position against supporting these sensible reforms, and the dual benefits for planning and vital public infrastructure.”
The package would have made social housing exempt from council rates like other public assets such as schools and hospitals; however, it would cost councils a large amount of income when many are facing deficits because of the Covid-19 pandemic.
Cr Laukens said the government has both limited funds council can raise themselves, while it proposes to take away the means to provide services to the community.
“Over the next 10 years this will rip more than $16.7 million out of services and facilities which our community relies on. This includes things like our libraries, playgrounds, clubrooms and change rooms, our parks and bike paths,” she said.
“While its own tax take is projected to grow at almost 7% per year over the next four years, the Victorian Government has capped increases in rates at 1.75% next year,
“For all the rhetoric surrounding partnerships to deliver the Big Housing Build, the lack of consultation with local government to understand the impacts of this proposal is astounding.”
The State Government said in a statement the package will not proceed under a re-elected Andrews government, and “despite delivering the package the sector called for, they have been unwilling to share the benefits of these reforms with the broader community.”
