The Victorian government has identified the first loser of its 2015-16 state budget: foreign property investors who will pay two new taxes.
Treasurer Tim Pallas, who will hand down the budget on Tuesday, says Australian buyers are exempt from the new and "modest" property taxes, which will raise about $330 million.
Foreign nationals who want to buy a house in Victoria must pay a three per cent surcharge on stamp duty from July 1, which is expected to raise about $279 million over four years.
A land tax surcharge - an extra 0.5 per cent from 2016 - will also scoop a collective $52.5 million for the government.
Mr Pallas said the new taxes would ensure foreign property investors paid their "fair share" towards infrastructure, and the added cost was a small component of the overall price and would not affect investor demand.
A $600,000 home would attract a surcharge of about $18,000 for a foreign buyer under the new taxes.
The move will also complement new federal government measures in the sector such as the crackdown on unlawful purchases also announced on Saturday, Mr Pallas said.
"Foreign investment is good for Victoria and it ultimately creates jobs," he told reporters on Saturday.
"But we do need to recognise there are pressures upon our property market."
Foreign Investment Review Board data shows foreigners poured about $14 billion into the state's property market last year.
Real Estate Institute of Victoria chief executive Enzo Raimondo does not expect the taxes to have a negative impact on the demand for investment properties, and agreed "everyone should contribute to the provision of amenities and transport".
Permanent Australian residents and New Zealanders will not be liable.
But the Property Council of Australia's Victoria branch deputy executive director Asher Judah said local home buyers would eventually pay more as a result as foreign national sellers would set their house prices to recoup the added tax.
"We believe elements of this policy have not been thought through," he said.
Victoria's recreational fishing industry is also set to get a $20 million boost, with Agriculture Minister Jaala Pulford announcing several measures on Saturday to improve participation in the sport, including increased fish stocks, upgraded facilities and children's programs.
She said the funding would help lure more visitors to the state, helping local business and creating jobs.