Victoria is overly reliant on property taxes to repair its budget bottom line and risks strangling investment and exacerbating rental affordability, the Real Estate Institute of Victoria has warned in its budget submission.

Treasurer Tim Pallas last year revealed Labor would extract $4.7 billion from property investors over the next four years through temporary levies aimed at “those most able to pay”, as net debt is forecast to climb to $177.8 billion by June 2027.