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Victoria’s State Revenue Office has also been accused of inflating land valuations so the government can charge higher taxes.

A steelworker working in a factory in Melbourne, Australia on April 30, 2013. AAP Image/Julian Smith

Manufacturers in Melbourne’s south-east are calling for the state government to put a freeze on its land tax levy until the “unjustified cash grab” has been investigated through an inquiry.

Honi Walker, chief executive of the South East Melbourne Manufacturers Alliance (SEMMA)—a peak industry association representing over 230 leading manufacturing companies located in southeast Melbourne—said her organisation received numerous complaints about the State Revenue Office (SRO) inflating land values.