Prosper Australia commissioned Dr Cameron Murray to examine the early benefits of ACT’s 20 year process replacing conveyancing stamp duty with land tax. This report outlines the findings.
- Increasing land tax rates appears to have deterred housing speculation
- Future land tax obligations are already capitalised into lower land prices
- Because of this, new home buyers save between $1000 and $2000 per year on mortgage costs
- New housing construction has remained strong during the tax transition period
- Residential rental growth is at historical lows, benefiting renting households
- The distribution of land tax obligations between different types of land holders is the main political sensitivity