A Dandenong business enormously impacted by the State Government’s land tax is considering a class action lawsuit against the State Revenue Office.
Already reeling from a 2300 per cent land tax rise in 10 years, Angie Romas also recently realised his Dandenong South sandblasting industrial business DH Corrosions will be charged at least $1889 in Emergency Services and Volunteers Fund (ESVF) according to the state’s levy calculator for 2024-25.
The amount is set to be higher as the levy will roughly double next year.
In the past decade, his firm’s land tax bill has soared from $8703 in 2015 to $203,600, prompting him to take the legal stance.
Mr Romas says he’s in the process of securing a solicitor who can take up the legal battle.
He may be forced to shut down his business next year due to the pile of ‘tax grabs’. saying the state is a “financial mess.”
“If things get tough in your home, you don’t keep spending, but not this government.
“They’re dragging all these businesses down to subsidise their disgraceful spending.
“We have become a socialist society… This government is a disgrace.”
The sandblasting, steelwork and painting business has remained in Dandenong South on the 1.7-hectare site since 1973 – a prime location.
The site receives offers almost monthly with Mr Romas saying selling it off is in his best interest due to the soaring taxes, which would put his 14 employees out of work.
“The (Government) get a bonus by getting me to shut down – they get a stamp duty charge, that’s why they don’t care. They’re trying to get as much money.
“The other workers – they can’t retire, where will they go?
“Young people aren’t getting into business anywhere in Victoria. Why would you get into business and give your profit to the government?”
Residents and business (industrial and commercial) will soon receive their council rates notice which will clearly highlight the amount based on the capital improved value of their property.
In Greater Dandenong, council rates bills are estimated to collect a massive $57 million on behalf of the state government’s ESVF.
This is a $22 million increase on the $35 million collected under the state’s former Fire Services Property Levy (FSPL) in 2024-’25.
Managing director of South East Melbourne Manufacturers Alliance (SEMMA), Peter Angelico says Greater Dandenong’s large industrial sector “undoubtedly” contributes to that $57 million.
“The increased levy represents yet another tax grab that exacerbates the financial strain on manufacturers who already contribute heavily to government coffers through various taxes, including payroll, land, and corporate taxes.
“These businesses are not just economic engines; they are major employers, supporting thousands of jobs in Greater Dandenong and beyond.
“SEMMA is deeply troubled by wasteful government spending, which this levy appears to perpetuate under the guise of funding emergency services.”
The alliance has previously called to attribute land tax rates to economic output not the land size and value.
While they say it acknowledges the importance of supporting Fire Rescue Victoria and other services, the increase in levy “feels like a blunt instrument to address state budget issues.”
SEMMA argues the impact of ESVF and other existing rising costs such as input costs and the cost-of-living crisis, will have a “ripple through the local economy, impacting families and communities”
It would result in reduced investment in innovation, deferred expansion plans, job cuts and more.
Managing Director of TM STRATA and a former councillor of Greater Dandenong Council, Tim Dark says a accumulation of various taxes coupled with ESVF and land tax add up and “start to bite.”
“There’s no question that the high levels of land tax are affecting the market quite significantly.
“It’s one thing to say that businesses are making money in those positions, but the amount of taxes that are coming out to be paid – not just land tax but payroll tax, GST and PAYG tax, fringe benefits tax – we start to become the biggest-taxing state.
“People start to look at whether it’s still feasible to operate a business in Melbourne or whether you cross the border to New South Wales or South Australia and transport from there.
“You can’t tax your way to prosperity.”
Dandenong hosts almost 1,400 manufacturing businesses and more than 21,000 workers.
The South East manufacturing sector employs more than 232,000 people, and generates $54 billion in gross regional product, according to SEMMA.
The State Government was contacted for comment.
