Skip to content

Mornington Peninsula Shire Proposes New Property Tax

Mornington peninsula tax

Mornington Peninsula Shire is confronting a pressing housing crisis that demands solutions. In response, the council is considering the implementation of an ‘Affordable Housing Development Contributions Scheme’. Here’s a comprehensive overview of the proposal:

The Mornington Peninsula faces a significant shortage of social housing, exacerbated by escalating property prices and a lack of government support. The proposed scheme seeks to address this by mandating contributions from property developers towards affordable housing initiatives.

This scheme has its critics though. Many people are questioning how raising the cost of building new houses will lower the cost of property.

If building a property is 3.3% more expensive, developers will consider this in the final build price. Furthermore, if the cost of building a house increases, existing builds will become more attractive to buyers and the cost of this will adjust accordingly.

Key Components

  • Contribution Rate: Developers would be required to contribute 3.3% of the market value of their projects towards the scheme. This can be seen as a similar expense to stamp duty.
  • Exemptions: Certain developments, such as renovations to existing homes and public buildings, would be exempt from the contribution requirement.
  • Purpose: Funds raised through the scheme would be directed towards developing new social housing projects or supporting existing housing programs.

Community Consultation

The council recognises the importance of community feedback in shaping this initiative. Residents are encouraged to provide input on various aspects of the proposal, including the contribution rate, exemption criteria, and potential impacts.

Next Steps

Following the consultation period, the council will consider all feedback before deciding whether to proceed with the proposed scheme.

Mayor Councillor Simon Brooks emphasises the significance of community engagement in this process and encourages residents to participate in shaping the future of housing in the Mornington Peninsula.

Get in touch with us to learn more about how this might affect you.

Secure your financial future today!