Vacancy tax to raise $78 million

Launch Housing is proposing a tax on vacant properties to increase funding to support women and children experiencing homelessness after fleeing family violence.

Tony Keenan, Chief Executive Officer of Launch Housing said the proposal provided to the Andrews’ government would involve taxing thousands of houses that are left unoccupied for a long period of time and could see up to $78 million raised annually.

“This would have the dual effect of raising much needed funds to implement the recommendations of the Royal Commission into family violence and increasing the number of properties available on the market,” Keenan said.

“Research indicates there could be between 22,000 and 55,000 vacant properties in Melbourne. However, last year alone, more than 1000 family violence victims missed out on housing support because there are simply not enough houses available.

“It seems absurd that thousands of perfectly good properties sit empty, while Melbourne is in the middle of a housing crisis. We want to quickly move women and children into safe accommodation, but we don’t have access to the houses.”

Keenan said the shortfall in appropriate rental properties in Melbourne puts considerable strain on services such as Launch Housing, forcing them to rely on motels and other transient accommodation for families.

“A vacancy tax will raise money needed to support these families as well as encouraging investors to make their properties available,” said Keenan.

“If investors choose to leave their properties vacant, they should contribute to the social cost of that.

“And if these owners don’t want to pay the tax all they need to do is rent out their property. The tax will only be levied when owners choose to leave them vacant.”

The proposal follows the recent announcement of a $552 million housing blitz in Victoria, following the recommendations of the Royal Commission into family violence.