Tax Working Group considers ‘vacant land’ and ’empty home’ taxes as a way of increasing housing supply and affordability

The Tax Working Group headed by Sir Michael Cullen is considering ‘vacant land’ and ’empty house’ taxes as one way of improving housing supply and affordability.

The Tax Working Group Interim Report, which was released on Thursday says it’s evident that New Zealanders are deeply concerned about the high cost of housing, and its impact on wealth inequality, social cohesion, and social capital.

“Consistent with these concerns, the group has been directed to have special regard to housing affordability in its work.”

Although tax reform is unlikely to be the dominant driver of the housing markets, it has identified options that could release some additional supply, the group says.

The introduction of a tax on vacant residential land, or on empty homes in residential areas, would intensify the use of existing urban areas.

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Source: Interest NZ