“Modest” annual property tax increases of between $47 and $130 a year over the next decade would be enough to fund the abolition of stamp duties in favour of a broad-based land tax, a move economists agree would make housing more affordable and add billions to the economy.
The independent Australian Housing and Urban Research Institute will launch the plan in Sydney on Thursday, arguing it represents a way through the political deadlock that has stymied tax reform.
University of Tasmania professor Richard Eccleston, who is leading AHURI’s Pathways to Housing Tax Reform, said the plan was cost neutral for the states and would only have a small effect on household budgets.
“The result of the shift is equal to about 0.1 per cent of household income a year and our argument is that’s not a massive imposition if you introduce it over 10 years,” he said.
Click here to read more.