In a statement,the Property Council confirmed it was briefed in confidence by the government on the proposed tax.
“Both prior to,and following,the government’s announcement,we have not been provided with any further documentation,modelling,legislation or any other government analysis of the[tax policy],” the statement said.
The group’s statement confirms that it was consulted on the tax but does not appear to confirm Mr Andrews’ claim of an “agreement”.
“We are committed to working closely and collaboratively with governments at all levels to achieve these outcomes,including with the Victorian government on their current proposal.”
The other two main industry bodies – the Housing Industry Association and Urban Development Institute of Australia – said they had been blindsided by last week’s announcement of the new tax.
Housing Industry Association executive director Fiona Nield said her organisation,the peak body for residential builders,was not consulted.
“This was an unexpected tax … We did not have warning of it,” she said. “It should never have been put forward without appropriate assessment of the impact it would have on house prices.”
The property and building industries warned last week that the tax could add almost $20,000 to the cost of a typical Melbourne house.
In 2019,the Property Council,the Urban Development Institute and the Housing Industry Association were all consulted by a ministerial advisory group set up to “provide advice to the Minister for Planning on possible models and options to facilitate the supply of affordable housing”.
The general idea of developers contributing to social housing was raised in meetings of this group,which concluded in late 2019.
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But Matthew Kandelaars,the Urban Development Institute’s Victorian chief executive,said the industry was never given any indication that the policies – streamlined planning permits which benefits developers and a new levy on those same developers – were linked. He said there had been no discussions about industry contributions since 2019.
“That issue was not raised with me in principle and no formal agreement was sought,” he said. “If it were to have been raised,we could not have agreed to it because,we have explained,the impost of a tax on a new home will always impact the cost of a home.”
Shadow treasurer David Davis said the Premier was being “loose with the truth” and claimed the government shelved the bill to avoid turning housing affordability into an election issue.
It is understood both the Department of Treasury and Finance and consulting firm Deloitte examined the net impact of a 2.5 per cent tax and a 2 per cent,with the rate lowered to 1.75 per cent after consultation.
The opposition had pledged to oppose the bill and it was unclear if the government would have secured five votes in the upper house it may have needed to pass the legislation.
The planned change also drew criticism from councils including the City of Melbourne,who said councils would be starved of revenue because one of the changes included exempting social housing from paying council rates.
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