Federal Budget secures Victoria’s prosperity

The Federal Government’s 2019/2020 Budget ticks many items on the Real Estate Institute of Victoria’s wish list and will set Victoria on a strong course for further economic growth.

Real Estate Institute of Victoria CEO Gil King said the Budget is a shot in the arm for small business which are the backbone of our economy.

“Most real estate agents are small businesses and local employers which will benefit greatly from company tax cuts to 25 per cent and the significant increase in the immediate asset right-off,” Mr King said.

“These stimuli will enable small business to invest in growing their business, employing more people and training their workforce.

“The REIV lobbied the Federal Government around issues of city sustainability and therefore we welcome the $6.2 billion in infrastructure commitments to Victoria, the majority to go towards public transport and roads.”

Mr King said this funding will help ameliorate the significant congestion issues that our city is facing and address the dire need for upgrades to suburban and regional roads, while having a positive impact on property values.

“Regional Victoria has weathered the storm of the recent property downturn, in part this is due to improved infrastructure in and around major towns and the Budget allocation for more spending in this area will accelerate the real estate appeal of Victoria’s regional areas,” Mr King said.

“The REIV welcomes the funding boost for training, together with the 10 new training hubs in regional areas. Real estate agents in country towns are often a pivotal cog in their communities and we intend to work closely with the Federal Government to ensure that regional agents can access these training funds to assist young people to get a great start in their real estate careers.

“We welcome the Budget’s projected surplus position in the forward estimates and personal income tax cuts for 94 per cent of Australians which will mean people have additional disposable income.”

Mr King stated that the REIV has a strong position on the issue of negative gearing.

“We acknowledge the Federal Government’s intention to continue with current negative gearing arrangements; a sound decision in the context of low property market confidence,” Mr King said.

“The spectre of negative gearing limited to new homes, proposed by the Federal Opposition, could lead to price falls and drag the economy into recession. The REIV will be lobbying the Federal Opposition in the lead up to their Budget reply on this issue. Now is not the time to put further pressure on property values and change the fundamentals of our economy.

“This Budget also deals with tough issues in our communities where real estate professionals are often in the frontline dealing with the implications,” Mr King said.

“We welcome the increased funding for addressing domestic violence, youth mental health and suicide prevention.

“Next month the REIV will commence training for real estate professionals on dealing with instances of family violence to better equip our members on this important issue.”