Renegade Economists Show 595

As broadcast on the 3CR airwaves 6 – 6.30pm on the fourth Wednesday of the month.

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Show Notes
Karl is joined by his colleagues Emily Sims & Jesse Hogan to pull apart property lobby spin in light of the recent Victorian Budget. We actually had a few wins, with the Rezoning Windfall Gains tax ruffling feathers amongst those who see it as their right to the golden pen tick, of having their land rezoned for millions. These are the sort of policies needed to quell a global property bubble out of control.

Related Links
Prosper in the media:
AFR: Stamp Duty taking tax policy backwards

“The rezoning windfalls tax is an attempt to wrestle back the $5.7 billion handed out each year in windfalls and is well overdue,” Prosper Australia director of advocacy Karl Fitzgerald said on Tuesday.

“The stamp duty element will penalise turnover, while land taxes will increase efficient land use. It will be interesting to see if the stamp duty inefficiencies are greater than the land tax efficiencies. They may well cancel each other out in terms of pricing.”

Victoria should be pushing for the abolition of stamp duty, Mr Fitzgerald said.

“Ultimately we would have preferred the government to take the first step towards shifting away from stamp duties and towards land taxes, but it appears Mr Pallas would prefer NSW to lead,” he said.

The Age on Top End Stamp Duty:

Prosper Australia director of advocacy Karl Fitzgerald said his organisation supported the direction of the tax increases.

“The government is sending the right message in moving the tax system away from taxing our incomes, and onto the tax base where the big chunk change is made – in property,” he said.

“Even as the pandemic was in full throttle, Victorian residential land prices still managed to increase by a remarkable $135.6 billion.

“Paying a share of that back means we all share in the fruits of community development.”

There was also a piece on ABC Radio news bulletins last Saturday morning, talking about how well the property lobby actually did out of the budget.

Source: Gabrielle Zuchman (Twitter)

PCA open letter
Prosper’s budget submission

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