Abolish Stamp duty and other unfair Taxes
Implement a Tax system based on land values.
For the benefit of the future prosperity of Australia and its people, the overhaul of the taxation system is desperately required. A land value tax system has many benefits for the economic wealth of the country and needs to be established.
Why is this important?
The benefits of a Land Value Tax (LVT):
LVT would encourage new capital investment rather than sterile land speculation as it would encourage a shift of private investment from land speculation (which creates no extra land but only higher land prices) to productive enterprises.
LVT would encourage the use of empty sites zoned for development, creating more job opportunities and wealth.
LVT would help avoid urban sprawl. As brown field sites would be developed within towns and cities it would be unnecessary to permit urban sprawl. Compact towns are also more efficient in their use of resources for transport and other services.
LVT could not be avoided. (Unlike income tax and business taxes where tax avoidance experts are in great demand and the ‘shadow economy’ flourishes to evade taxes.) Every landowner would be required to register their land and to pay LVT on all their land holdings. With LVT any site with no registered owner would be sold by auction for the benefit of the Government.
LVT would provide automatic compensation for those sites which are disadvantaged by a new development. For example: with a new railway line most sites (especially those near stations) benefit from big increases in land values but some sites (maybe housing close to the track and suffering from its noise and vibration) would lose some value. These sites would pay a lower Land Value Tax, providing automatic compensation without any complicated appeals system.
Lower interest rates; The RBA tries to control land price and hence property inflation with a higher base rate. LVT would act as a damper on escalating land prices, allowing the Bank to lower interest rates for the benefit of homeowners, industry and small firms.
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