Dandenong MP Gabrielle Williams has brokered a meeting between a “seething” manufacturers body and Treasurer Tim Pallas over land tax hikes.
South East Melbourne Manufacturers Alliance called for an exemption for manufacturers who have been struck by land tax hikes of up to 300 per cent in the past year.
In a fierce campaign, SEMMA – backed by an emphatic survey of its members – described the hikes as “gouging” manufacturers to cover the government’s “Covid debt burden”.
It’s a move that will cost jobs and investment as well as hinder business’s ability to compete interstate and overseas, SEMMA argues.
A Hallam manufacturer stated its land tax bill soared more than $119,000 in the past year – up from $58,575 to $177,400.
A spokesperson for Ms Williams said: “Gabrielle is facilitating a meeting between Tim Pallas and SEMMA so that SEMMA can raise their concerns directly with the Treasurer”.
SEMMA chief executive Honi Walker confirmed the meeting set for Tuesday 5 March.
The alliance earlier presented to the State opposition’s public forum on tax reform at Parliament House on 27 February.
On the same day, opposition jobs and industry spokesperson Bridget Vallence accused Jobs Minister Natalie Hutchins of being “missing in action” on the issue.
“Consumers are paying more due to Labor’s economic incompetence.
“Every time land tax goes up, manufacturers cannot invest in new equipment, cannot hire new staff or put on additional apprentices, but must raise their prices.
“Minister Hutchins must come out of hiding. Stop ignoring the manufacturing sector which is so vital for our economy and jobs, pick up phone to the Treasurer to hold an urgent inquiry into the mess Labor has made.”
The increase in land tax rates is part of the State Government’s Covid Debt Repayment Plan introduced in 2023.
“We’re continuing to invest in Victoria’s manufacturing industry to help local businesses innovate and expand as they are key to growing our economy and supporting local jobs,” a government spokesperson said.
The changes to land tax rates and thresholds were “temporary”, the spokesperson said.
“Land tax assessments also move with land values.
“Victoria’s land tax scale remains progressive and ensures that smaller property investors pay proportionally less than those with larger landholdings.”
More than half of SEMMA’s membership comes from Greater Dandenong.
The South East region employs 267,500 people in manufacturing and provides 30 per cent of Australia’s manufacturing output.
