Most Victorians Blame State Taxes for the Cost of Housing, New Survey Finds

A new survey of Victorian households has put a number on something many buyers and brokers have suspected for a while, that state taxes are doing real damage to how much housing costs here. Roy Morgan surveyed 3,863 Victorian adults between 8 and 12 October on behalf of the Property Council of Australia, and the results were striking. Just over 80 percent of respondents blamed the string of new and increased state property taxes introduced since 2014 for pushing up what people pay to buy or rent a home.

The same survey found 88 percent of Victorians are worried about housing affordability, and close to two thirds think lighter property taxes would encourage more private money into building new homes. More than 40 percent named taxes and charges as a direct barrier to getting more housing built in the state.

What the Property Council wants changed

Off the back of these results, the Property Council put together a list of changes it wants the Victorian Government to consider. The headline items are scrapping stamp duty on all newly built homes, doubling the First Home Owner Grant from its current $10,000 to $20,000, and introducing a new $25,000 bonus to encourage older homeowners to downsize. The group has also called for the Absentee Owner Surcharge and the Windfall Gains Tax to be abolished, arguing both discourage the kind of investment that gets new housing projects built.

Matthew Kandelaars, the Property Council's group executive of policy and advocacy, described Victoria's housing market as on life support, and said that when buyers disappear, pre sales dry up, banks stop financing projects, and construction slows down with them.

A wish list, not a policy

It is worth being clear about what this actually is. These are proposals from an industry group, built on a survey it commissioned, not a decision or an announcement from the Victorian Government. None of it, including the grant increase or the downsizer bonus, is currently law or funded in a budget. Whether any of it gets taken up is a separate question, and probably one we will not have an answer to for some time. If you come across a headline treating the $20,000 grant or the $25,000 bonus as already available, it is not. Not yet, anyway.

Why it is still worth paying attention to

Even without a policy change behind it, the gap between what buyers are asking for and what is currently on offer tells you something useful if you are planning to buy in Victoria. The current $10,000 First Home Owner Grant applies to new homes only, and it has stayed at that level while build costs and established home prices have kept climbing, which is a large part of why the industry wants it doubled. If you are weighing up a new build against an established home, or wondering whether to buy now or wait and see what the next state budget brings, these are exactly the kind of questions worth working through properly rather than guessing at.

For first home buyers and downsizers alike, grants, concessions and duty settings can move the numbers on a purchase more than people expect, in both directions. That is reason enough to get a clear read on your own situation, current rules included, before assuming a scheme does or does not apply to you.

Figures and quotes in this article are drawn from a Roy Morgan survey of 3,863 Victorian adults, conducted 8 to 12 October 2026 on behalf of the Property Council of Australia, as reported by Australian Broker and Elite Agent on 28 October 2026.

This article is general information only and does not take into account your personal objectives, financial situation or needs. Please speak with a Claremont Financial broker before making any borrowing decision.