Powerful stamp duty income has underpinned a greater than anticipated spending budget surplus of $ 500 million, the Victorian Government says.
Treasurer Tim Pallas released a price range update that showed the surplus had elevated to $ 1.7 billion, up from the prior estimate of $ 1.2 billion in May.
Mr Pallas attributed the huge boost to the bottom line to the booming house industry, but warned the Government could not bank on such windfalls in future.
“Our reliance upon land taxes does mean that there will be volatility,” he said.
“We can not just assume that these numbers will stay around forever.
“They basically supply us with a buffer against a downturn, if and when it comes,” he stated.
Mr Pallas stated the Government was examining techniques to tackle housing affordability, as home costs shoot up.
“It’s a single of the largest and a lot more substantial policy troubles that confront Government,” he said.
“I am very considerably conscious of it, the Government is conscious of it, and we will be looking for to address this dilemma root and branch into the future.”
Mr Pallas stated the Andrews Government had been functioning on a housing affordability strategy for months, but would not reveal if it included cuts to stamp duty or better incentives for 1st residence-purchasers.
The spending budget update also showed a larger tax-take of $ 411 million, driven by population development, but public sector costs grew by five per cent.
“We have observed an boost as a consequence of the quantity of folks that are getting employed,” he mentioned.
But Opposition spokesman John Pesutto accused the Government of losing manage of the economy.
“What we’re seeing here are some quite ominous signs on the EBA (enterprise bargaining agreement) front,” he said.
“The massive query for Victorians to ask is what are they obtaining out of this? They are not receiving considerably.”
Across the budget and forward estimates, surpluses are set to total $ 6.7 billion.
Subjects: budget, government-and-politics, tax, vic