Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here�s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

Just plain unfair: the taxation of new housing

By Ross Elliott - posted Tuesday, 24 July 2012


Pointless anyway?

If the inequity of this approach wasn’t bad enough, there’s the fact that it doesn’t even raise that much money. There are so few new dwellings relative to total stock (additions are made at only around 1% to 2% per annum) that the capacity of these levies to raise much relative to total council rates revenues is miniscule. The Gold Coast City Council, for example, collected almost $1 billion in revenues in 2010-11, of which roughly half was from general rates. Only $24.9 million came from ‘developer constributions’ which is piddling by comparison. Yet the effect of these levies, applied as they are to such a select section of the market, has been to stifle activity and depress the construction industry. They have a highly disproportionate effect on depressing new housing and on exacerbating the affordability problem.

The Gold Coast (continuing with this example) could abolish these levies altogether, which would add only $25million to the $500million general rates revenue needs of the council, meaning that the broader community will pay through their rates for the infrastructure they will enjoy, instead of assigning the burden to those least capable of paying.  And by abolishing the levies, they’d be making a significant step in the direction of approving affordability and stimulating the industry – both subjects which they’ve had much to say about.

A similar approach to more equitable taxation of housing, if adopted more broadly by governments state and local, might just achieve the sort of stimulus that wasted millions of grants and incentives have failed to deliver.

Advertisement

I wonder if anyone’s prepared to make the first step or even if anyone really cares?

  1. Pages:
  2. 1
  3. Page 2
  4. All

This article was first published on The Pulse on July 21, 2012.



Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

8 posts so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

Ross Elliott is an industry consultant and business advisor, currently working with property economists Macroplan and engineers Calibre, among others.

Other articles by this Author

All articles by Ross Elliott

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Photo of Ross Elliott
Article Tools
Comment 8 comments
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy