Victorian homeowners in Australia will face the highest property tax starting from the 2023-2024 financial year as the state Labor government implements its plan to repay COVID-19 debt. According to a new report from the Victorian Parliamentary Budget Office, Victorians will be required to pay an estimated property tax of $2,000 per person in the current financial year, surpassing residents of New South Wales (NSW) and Queensland who will pay around $1,800 and $1,300 respectively. In the future, Victoria’s property tax per capita is projected to increase to $2,400 by 2026-2027, while other states and territories will experience minimal changes. By 2025-2026, Victoria is expected to generate the highest property tax revenue at $16.4 billion, with $8.8 billion coming from land transfer duty and the remainder from land tax. The report also highlights Victoria’s heavy reliance on property tax, with 17% of the state’s total revenue anticipated to be derived from property tax by 2025-2026. This dependence is attributed, in part, to lower revenues from other sources such as commonwealth grant revenue and royalties. The introduction of a COVID-19 debt repayment plan by the Victorian government has necessitated significant adjustments to the tax-free threshold for general land tax rates, as well as additional charges for homeowners starting from July 1, 2024. Victoria has incurred a massive public debt of $31.5 billion due to its pandemic policies, prompting the Labor government to implement a ten-year repayment plan. This plan specifically targets large businesses and property owners, a move that has garnered criticism from the business community. The state also intends to reduce public sector jobs by 3,000-4,000 and eliminate payroll tax exemptions for several private schools. Despite these measures, Victoria is expected to experience a significant rise in government debt over the coming years, with net debt forecasted to reach $116.9 billion in 2023 and $171.4 billion in 2027. Despite the state’s grim financial situation, the Labor government continues to pursue costly infrastructure development. The government reportedly allocated $75 billion to a spending fund in the state budget for infrastructure and government agencies without disclosing how the money would be used. In response to the report’s findings, the state government defended its property taxes by citing Australian Bureau of Statistics data showing that Victoria remains the second-lowest revenue state in the country. On the other hand, Opposition Leader John Pesutto attributed the high taxes to the Andrews government’s mismanagement and waste. He warned that higher property taxes would cause rents and property prices to increase, exacerbating the housing affordability issue. Liberal MP Jess Wilson, who commissioned the report, echoed these concerns, emphasizing that higher property taxes would worsen housing affordability and reduce the number of homes available for rent.