Plucking the Golden Goose

The Daily Mail had a headline that most Confidential Daily readers knew was coming months ago.

Of course, they were referring to the Socialist State of Victoria, where homeowners have been landed with massive increases in taxes and regulations to stave off the State from bankruptcy.

They've been slugged with land tax increases, a vacant property tax, and a new vacant land tax scheduled for 2025.

The new tax applies to property that has been vacant for more than six months a year. It's called the vacant land tax, but it applies to established properties, not land.

"The tax is one per cent of the property value in the first year, and then it's two per cent in the second year, three per cent in the third year and it stops at three per cent."

This is a wealth tax that is dressed up as a housing affordability measure.

The government's theory is that more homes will be available for purchase if investors are forced out of the market. That may partially be true, but it will also reduce the number of properties available for rent and increase the price of rentals.

As forecast here many moons ago, property is the obvious target for governments because someone has to own it, and it cannot be transported elsewhere.

You can expect more of the same from governments nationwide as they scramble for cash to cover their ridiculous spending.