A $5.2 billion hole blasted in the state budget by the real estate downturn has forced the Andrews Labor government to launch a tax raid on property owners, gold-miners and luxury car buyers to help make ends meet.

The government says stamp duty revenue will collapse by an average of $1.3 billion a year for the next four years, the worst such result in Victoria’s history, dwarfing the losses seen during the global financial crisis.

Treasury predicts the total shortfall over the four-year budget projection period will be $5.2 billion.

Victorian Treasurer Tim Pallas. Credit:Alex Murray

The revenue collapse is driven by house and apartment sales going into freefall Victoria this financial year with the average number of monthly transactions plummeting by 15 per cent, from 16,300 in 2017-2018 to 13,900 this year, according to the latest figures from the State Revenue Office.