MELBOURNE, AUSTRALIA – The South East Melbourne Manufacturers Alliance (SEMMA) is irate at the response
from the government’s land valuation body – Valuer General Victoria (VGV), who in a meeting said, “If you don’t
like the valuation – then object.”
In what has become a roundabout, SEMMA has discovered that the VGV uses contracted valuers who use a
complex calculation with variances of statistical tolerances as part of their formula.
Suffice to say, you need an economics degree and a degree in land valuation to work out these increases.
While the VGV Director did commit to full disclosure in the valuation process, he did note that it comes with a 10%
buffer and noted that there were “significant variations of industrial properties.” Of course, we will have to work
through the information on their website to understand the process.
SEMMA is demanding a Parliamentary Inquiry into this Land Tax process.
SEMMA is calling for a cap on increases in Land Tax and a cap on Land Valuations if we cannot be exempt.
SEMMA CEO Honi Walker said, “These increases have been felt across our entire membership base and the affects
will be felt at the consumer level when we are forced to increase our prices to cover these tax hikes. If you thought
the cost of living was high now – just wait until manufacturers and the supply chain pass on their land tax
increases. It just doesn’t pass the pub test”.
“There is no justification for these increases in Land Value. It’s a tax grab from a government that is drowning in
debt”.
“SEMMA believes manufacturers should be exempt from this Land Tax increase as we are part of an essential
service, and our Sovereign Capability may be at risk” she said. SEMMA is encouraging all members to appeal their
assessments. Objecting to a rating valuation (land.vic.gov.au)
Background
In a survey to SEMMA members, 100% of respondents said they were facing extreme increases in Land Tax from
last year.
SEMMA’s survey revealed one member’s tax bill in 2023 with the Land Value in Dandenong at $3.75m and Land Tax
was $47,100. In 2024 Land Value increased to $4.3m and Land Tax jumped to $66,100.
Another Member located in Hallam, land was valued at $4.2m in 2023 with a Land Tax of $58,575 and in 2024 it
jumped a staggering 55% in valuation to $8.5m with a Land Tax of $177,400. Another member example: In 2023
Land Value was $4.1m and Land Tax was $56,407. In 2024 the Land Value is now $6.35m with a Land Tax of
$120,425. That’s over 50% increase.
“Manufacturers are being gouged by the state government. We kept the state’s economy going during COVID as
manufacturing was designated an “Essential Service”. We continued to pay ever-increasing taxes – (land, payroll,
FBT, PAYG, Capital Gains Tax, GST and Company Income Tax) plus an increase in Work Cover premiums in some
cases over 70% – you name it we paid it. And we did not receive any government hand-outs to keep our doors open, unlike other industries that are now closing for a range of reasons.
Now we are being asked to cover a debt that we did not create. There is no justification for this Land Tax increase
on manufacturers,” said CEO Honi Walker.
“Manufacturing cannot continue to cover the government’s COVID debt burden. Manufacturers are being
penalized for running profitable businesses – businesses that are the engine room of our state’s economy.
Our members, if forced to pay these unwarranted taxes have said it will impact their ability to employ more
people, invest in capital equipment and may even be forced to close, causing huge job losses. Companies may even
reconsider establishing new businesses in Victoria with taxes this high. We are the most taxed state in Australia”.
SEMMA asked these questions of the VGV and the government and received no clear responses.
1. Can the government provide transparent reasoning and evidence behind the substantial increases in land values
and consequent land tax burdens on local manufacturers, particularly those exceeding 50% within a year?
2. How does the government justify imposing such significant tax hikes on manufacturers, who have been essential
to the state’s economy during the COVID-19 pandemic, especially considering they did not receive government
support while continuing to operate and contribute to economic stability?
3. What measures has the government taken to ensure fairness and accuracy in the calculation of land values and
land tax, particularly for manufacturers who may be disproportionately affected by sudden and steep increases?
4. In light of concerns raised by SEMMA about the potential negative impacts of these tax increases on
employment, investment, and the viability of manufacturing businesses, what strategies does the government
have in place to mitigate these effects and support the sustainability of the manufacturing sector?
For more information on SEMMA and our activities, please visit www.semma.com.au
ABOUT SEMMA
SEMMA, the South East Melbourne Manufacturers Alliance, is a membership-based organization that represents
the interests of manufacturing businesses in the South East Melbourne region. The South East region of Melbourne
generates $43b in gross regional product, hosts 50% of Melbourne’s manufacturing jobs employing 267,500 people
and provides 30% of the nation’s manufacturing output.
SEMMA aims to create a vibrant manufacturing ecosystem that supports local businesses, promotes growth, and
contributes to the overall economic prosperity of the region.
NOTE TO EDITORS
Interviewees are available for comment on request.
For more information, news, and perspectives from SEMMA, please visit:
The SEMMA Newsroom https://www.semma.com.au/news/
Our official LinkedIn Page https://au.linkedin.com/company/semma-au
Our YouTube channel https://www.youtube.com/channel/UC771dKQqxfmdXV7fEdSvMXA
Web links, telephone numbers, and titles were correct at time of publication, but may have changed.
CONTACT
Honi Walker
SEMMA CEO
honi@semma.com.au | 0422 488 678
