Media Release

22 May 2017

Davis: Andrews’ land valuation tax grab will cause job losses and service cuts

Monday 22 May 2017

Andrews’ land valuation tax grab will cause job losses and service cuts

Daniel Andrews’ sneaky land tax grab, driven by moving from two yearly to annual land valuations will force councils to cut local services to pay the extra costs and charges while Daniel Andrews reaps a massive $200 million dividend

Figures in the State Budget papers suggest the government could potentially reap an extra $200 million in land tax in 2019-20, at a cost of $20 million to local ratepayers and no extra revenue for councils.

It is also clear that the rushed Labor plan to centralise all property valuations in Melbourne at the Valuer-General’s office will cause many unintended impacts on local councils, but most savagely will force job losses in local valuation staff.

Daniel Andrews and his Ministers want this extra money and are prepared to get it at the expense of locally employed qualified valuers, particularly in the country.  I am concerned that this ill-thought- through scheme to grab more revenue by annual revaluation will effectively double the administrative costs of the scheme and lead to a long list of other unintended consequences.

Councils have told the Municipal Association of Victoria of a long list of other unintended impacts, including additional administration costs to upload data annually, incompatible software systems, lost revenue from the sale of valuation data, payout of existing contracts, higher prices to undertake council asset valuations – and the list goes on.