The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
19
print
Print
ResidentialWed 02 May 18

Victorian State Budget: Faster Planning and a $13.7bn Building Boost

0594e294-3f54-40c8-a17a-84b80b03cbb2

The Victorian government has announced its election year budget, emphasising its focus on infrastructure with a record $13.7 billion infrastructure pledge.

Booming population and jobs growth is fuelling significant infrastructure spending in the Victorian budget, which is expected to deliver a $1.4 billion surplus next financial year.

To keep up with its population growth and the pace of development, the Victorian government has also announced $9.7 million to process a greater number of planning permits and $3.5 million to support councils with speedier subdivision approvals.

The Andrews government has also pledged $50 million to community infrastructure projects in Melbourne’s growth corridors, for developments such as parks, swimming pools and community centres.

The budget will increase government’s spending on employees including engineers, construction workers, apprentices, nurses and teachers by 11 per cent in the 2018/19 financial year.

Related reading: Transit Links a Priority for $55bn Infrastructure Pipeline: Report

Property cool down to ease stamp duty takings

Stamp duty is the largest contributor to the state’s tax revenue and the Victorian treasury anticipates a slowdown in the property market, and consequently a drop in stamp duty revenue.

Stamp duty is expected to rise 3.8 per cent to $7.1 billion in the coming 2018-19 financial year. In comparison, stamp duty grew by 11 per cent in 2017-18.

"Price and volume growth in the property markets on the east coast are likely to slow in 2018," the state budget says.

“There is some evidence from auction clearance rates, residential building approvals and housing finance that the cycle in the housing market has started to moderate,” the budget reported.

Related reading: First Home Buyers Given Fighting Chance with HomesVic Scheme

However the contribution from commercial property increased between July and December last year from 14.3 per cent to 24.3 per cent.

“Low vacancy rates for office space in Melbourne, strong growth in rental income and building approvals suggest commercial duties may remain high in the near term,” the report says.

New guidelines for the exteriors of Melbourne’s apartment towers will be developed by government with the aim of ensuring the quality and standard of new building finishes.

Planning Minister Richard Wynne said government would make sure apartments were “built to a high standard and no corners are cut.”

Related reading: Developer Criticises Fishermans Bend Development Halt

Government will provide $4 million to complete planning at Fishermans Bend for schools, public transport.

Victoria’s economy has grown by $48 billion in the past three-and-a- half years, Treasurer Tim Pallas said ahead of the budget.

“We have the strongest economy in the nation, we have the strongest job growth in the nation,” Pallas said.

Social housing was one of the budget losers with no new money announced to tackle housing affordability, or pledged towards new social housing.

ResidentialOfficeInfrastructureAustraliaMelbournePolicyPolicy
ADVERTISEMENT
TOP STORIES
Exclusive

Azure’s Trent Keirnan on Playing the Long Game

Taryn Paris
5 Min
Exclusive

Private Credit Surge, Skittish Buyers Force Banks to Loosen Presale Rules

Taryn Paris
5 Min
Forme's James Place on James Street, Fortitude Valley Brisbane
Exclusive

Forme Pushes the Boundaries on James Street Precinct

Renee McKeown
4 Min
Exclusive

Invicta House Rebirth Proves Recipe for Heritage Success

Leon Della Bosca
7 Min
Exclusive

Freecity’s $300m PBSA to Prove Worth of Modular at Scale

Leon Della Bosca
7 Min
View All >
134-136 Botany Road HERO
Office

Six-Storey Scheme Proposed for Booming Botany Road

Leon Della Bosca
Office

No Hail Mary Required for Brisbane Place Gamechanger

Taryn Paris
Residential

The Most Active BtR Sector Investors Revealed

Shravanth Reddy
The Urban Developer reveals the most active investors in the build-to-rent sector...
LATEST
134-136 Botany Road HERO
Office

Six-Storey Scheme Proposed for Booming Botany Road

Leon Della Bosca
3 Min
Office

No Hail Mary Required for Brisbane Place Gamechanger

Taryn Paris
3 Min
Residential

The Most Active BtR Sector Investors Revealed

Shravanth Reddy
4 Min
A rendering of Third.i's masterplanned community Charmhaven on the Central Coast of NSW.
Residential

Thirdi Plans $1.6bn Central Coast Housing Community

Marisa Wikramanayake
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/victorian-state-budget-faster-planning-and-a-137bn-building-boost--