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New Andrews Government tax on new home buyers and renovators

The Andrews Government demand for a dividend from the Victorian Managed Insurance Authority in its Budget is at odds with the direction of the recent Auditor’-Generals Report.

The Opposition is concerned that the Government’s massive new tax on the Victorian Managed Insurance Authority (VMIA) will see a $50 million impost on domestic building insurance, reducing value to consumers and likely impacting on housing affordability.

Budget Paper No. 5 at page 28 shows the Government’s unprecedented plans to tear $420 million from the VMIA over the next four years.  The VMIA annual report for 2014 shows 12% of total gross premiums by the VMIA was obtained from Domestic Building Insurance.

Quotes attributable to Shadow Minister for Equality, David Davis:

The imposition of a massive tax hit on the building and construction sector in Victoria breaches government promises of no new taxes or charges and works directly contrary to many of the Auditor’s recommendations that seek to lower premiums and enhance coverage for consumers.

A new tax on new home buyers and renovators is a clear breach of repeated Labor election commitments and can only make housing less affordable for Victorian families.