Prosper Australia

Here we can see 2 examples of former Commonwealth land being released ‘to the market’. Snapped up by a developer, such large ‘land banks’ are manipulated such that the building of homes is kept under control to ensure the supply of housing does not push down housing prices. Is this the sort of level playing field we should be happy with? Kevin Rudd’s plan to release more land will result in the similar trends. It is only when a decent holding charge on land is implemented that housing prices drop. Why? The higher holding cost for land ownership will see the main component of an auction price - the land - pushed down through added supply. Land bankers will become land (& housing) builders. Spinoffs include benefits to the poor when GST and (in time) income tax are abolished by the transition to holding charges on land through a Land Value Capture tool.

The Central West land banking has been going on for over 4 years, with a handful of building teams limping the supply of auctionable houses along. One can see this by looking at the top right hand and bottom left hand corners to see many vacant blocks of land. Future home owners are being held to ransom by a tax system that encourages wasteful use of our most precious resource - land.

• Central West Land Bank



























• Laverton Land bank