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Evaluation
The First Interval: evaluating ACT’s Land Value Tax transition
Publisher
Land tax
Stamp duty
Tax reform
State and Territory budgets
Australian Capital Territory
Description
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.
Main 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
Publication Details
Copyright:
Prosper Australia 2016
License type:
All Rights Reserved
Access Rights Type:
open
Post date:
14 Oct 2020
