Kelly O’Dwyer’s committee looking into foreign property investment in Australia has genuflected to all the property urgers and touts and ignored one critical fact: we have years and years of supply of suitably-zoned land in Australia. There is absolutely no shortage of supply. There are hold-outs and drip-feeders pushing up prices, however.
Why not let both foreigners and all locals pay a holding charge, a land tax, as recommended by The Henry Tax Review and watch the supposed “shortage” of supply disappear instantly?
The other aspect of public capture of the rent of land, of course, is that the more is taken publicly, there’s less to be privately capitalised into higher prices. Yes, that’s correct, Kelly, a land tax keeps a lid on escalating property values because it’s the land that increases in price, not the improvements – foreign investors or otherwise.
Your committee missed the need for greater capture of publicly-generated land values, Kelly?
That amounts to a whitewash. Shame!