Politics
Dandenong's 0.25% sales tax would fund 150 affordable housing units
A proposed 0.25 percent sales tax increase would raise an estimated 1.8 million dollars annually for 150 new affordable units while adding 25 cents to every 100 dollar purchase made inside city limits.
How we reported this
The Dandenong sales tax referendum on the August 4 ballot would add a 0.25 percent levy to retail purchases within city boundaries, with all revenue earmarked for construction of 150 affordable housing units over the next five years on two sites near the main railway station.
Local housing records show 1,200 households currently on the waiting list for public accommodation as of the June 2026 quarterly report from the city housing authority, a figure that has grown by 180 households since the same period in 2025.
Who Pays and Who Receives the New Units
Households that buy groceries, clothing or household goods at stores along Lonsdale Road or at the central market would see the tax applied at checkout, an amount the city clerk's referendum guide calculates at 25 cents on a 100 dollar transaction and 2 dollars and 50 cents on a 1,000 dollar purchase. Businesses that collect the tax would face added bookkeeping requirements but would not pay the levy themselves on their own sales.
Applicants approved for the new units would gain access to rent capped at 30 percent of household income, a threshold set in the enabling ordinance, while current market rents in the same postcode average 1,650 dollars per month for a two bedroom flat according to the most recent rental survey published by the city planning department.
Revenue Figures and Remaining Steps
The city finance department projects the levy would generate 1.8 million dollars per year based on 720 million dollars in taxable retail sales recorded for 2025, enough to cover construction costs of 9 million dollars spread across the five year building schedule. If approved, the tax would take effect on January 1 2027 and remain in place until the housing target is met or voters repeal it in a future election.
Ballots will be mailed to all registered voters starting July 20, with in person early voting available at the civic centre from the same date until August 3. Results are scheduled to be certified by the city clerk no later than August 11.