Victorian industry groups have largely welcomed Premier Ben Carroll’s recent announcement to gradually increase the land tax threshold but have called for faster reforms to restore the state’s competitiveness. The Premier revealed on Sunday that if re-elected, his government would raise the value threshold for land tax by $25,000 annually. At present, the threshold stands at $50,000, a reduction implemented in 2023 to help offset pandemic-related debts. According to Treasurer Colin Brooks, the threshold is set to return to its previous level of $300,000 by 2033.

Government data, scheduled for release on Monday, indicates that once fully implemented in 2033, the changes will benefit over 250,000 property owners, with the median age of those affected being 53. The highest concentration of eligible owners resides in Melbourne’s council area.

Despite acknowledging the announcement as a positive move, business representatives cautioned that the pace of reform remains insufficient. Amelia Bitsis, acting chief executive of the Victorian Chamber of Commerce and Industry, described the plan as “a small step forward” but stressed that “business can’t wait until 2034 for Victoria to become competitive again.” She highlighted that the current land tax burden is suppressing investment and placing considerable pressure on small businesses and individual investors.

Similarly, Andrew Lowcock, deputy executive director of the Property Council of Victoria, expressed support for the government’s proposal but noted that the changes would “only scratch the surface” of the challenges faced by property owners and businesses.

The government’s phased approach aims to ease the financial pressure on landowners over the coming decade. However, industry voices indicate that accelerated adjustments are needed to better support economic growth and investment in Victoria.