Melbourne Stamp duty exemption to save up to 18,000 construction jobs - CFMEU

THE CFMEU has come out this week applauding the Victorian Government’s announcement to grant a stamp duty exemption on inner city residential developments amongst other property sector stimulus measures.

The announcement means no stamp duty will be paid on new residential property worth up to $1 million in the Melbourne local government area, and concessions of up to 100 percent on stamp duty if the property has been unsold for more than 12 months, for contracts entered from May 21, 2021 to June 30, 2022.

Melbourne city’s construction sector has been decimated by the pandemic, with only one new development beginning in construction in the last year. Many other developments with council approval to begin have been put on hold, according to the CFMEU

The vast majority of large scale commercial construction projects occurring in the city had all began pre pandemic, without these economic stimulus measures announced by the budget, there would be no work for the thousands of construction workers to move to once these projects conclude.

The CFMEU feared up to 18,000 jobs could have been lost by 2023.

Victorian state secretary of the CFMEU Construction and General Division, John Setka said while borrowing is cheap and investment in the property market around the world is still strong, this policy provided "an incredible opportunity for home buyers, investors, and the Victorian economy".

"We’re encouraged that the Victorian Government continue to recognise the strength of the construction industry and the important role we all play in driving and generating major employment and economic growth for our state," he said.

“With very few developments beginning since the pandemic, the industry was beginning to lay off workers. Stamp duty exemptions are a much needed economic stimulus measure for the entire Victorian economy.

“City based construction workers play a hugely important role in our state’s economy. The stamp duty exemption will play an important role in guaranteeing the jobs of thousands of construction jobs," Mr Setka said.

“Melbourne City’s construction sector took a major hit during COVID, and it’s still yet to recover. Thursday’s announcement is a lifeline for industry, home buyers and construction workers.”

 

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