Prosper Australia today welcomed the inclusion of a stamp duty to land tax transition in Infrastructure Victoria’s new strategy but criticised the absence of value capture as a sustainable and equitable funding mechanism.
“We applaud Infrastructure Victoria’s endorsement of a broad-based annual land tax. This reform recognises that shifting the tax base from transactions to land values is a fairer, steadier way to collect revenue”, said Prosper Australia’s advocacy director Rayna Fahey today
“We have been advocating this reform for decades, and it’s encouraging to see it embedded in Victoria’s long-term blueprint. Our transition plan sets out how this shift can be implemented gradually and fairly, while maintaining revenue from land.”
However, Prosper Australia is disappointed to see the absence of value capture discussed as a key mechanism for infrastructure funding.
“Land value bonanzas from infrastructure are as old as Victoria. It’s time to learn the lessons of the past and capture these increases for the common good, not just a lucky few.”
“Infrastructure investment and rezoning generate large windfall gains for existing property owners. Without value capture mechanisms, these unearned gains exacerbate wealth inequality, entrenching unequal access to housing, jobs and services, as higher-wealth households move into areas well served by infrastructure while lower-wealth households are pushed into areas of lower accessibility.“
