CONGRATS, PROSPER OZ!

The ‘risky’ property tax grab grows faster than GST, income tax

http://www.afr.com/real-estate/residential/the-risky-property-tax-grab-grows-faster-than-gst-income-tax-20150520-gh5cwb

Pay-walled, unfortunately, but here’s a grab:

Almost all analysis, most recently from the Commonwealth Treasury and the South Australian Government identified stamp duty as one of the least efficient taxes, a drag on economic performance, and restriction on real estate supply.

The South Australian Tax Review discussion paper, suggested stamp duty on real estate be replaced by a broad based, no exemption, land tax.

The proposal drew support from Prosper Australia, a non-government organisation “inspired by economic justice. Policy Director David Collyer says stamp duty is a “vile” instrument. “It traps people in and out of housing and is a handbrake on economic activity”.

But land tax in its current form is not the answer. The South Australian review found that land tax was “less efficient than it could be” because it does not apply to all uses of land.

“The Government recognises that taxes on land have the potential to be a very efficient source of revenue if they operate with no (or very few) exemptions” , the report concluded.