Prosper Australia has rejected calls for new tax breaks and subsidies for developers in Geelong’s CBD, warning that such measures would shift private risk onto taxpayers without addressing the root cause of stalled development.
“Governments should not be in the business of propping up private development projects,” said Rayna Fahey, Prosper Australia Executive Director, today. “If projects are not viable under current conditions, that is a market signal, not a justification for public subsidy.”
Local leaders have proposed land tax reductions, stamp duty concessions, and even government-backed guarantees for unsold apartments. Prosper Australia argues these measures would socialise losses while privatising gains.
“Developers have options. They can reduce rents to attract businesses and revitalise the CBD in the short term, or they can sell sites to those willing to develop at current market conditions. That’s how functioning markets adjust.”
Prosper Australia emphasised that land taxes are not a burden but a fair public return on the value created by the community.
“Land value is not created by developers alone; it comes from public infrastructure, population growth, and community investment. Land taxes simply return a portion of that publicly created value back to the public.”
The organisation warned that reducing land taxes or offering subsidies would likely entrench speculation rather than encourage productive development.
“If anything, the evidence shows that holding costs on land should be strengthened to discourage land banking and bring sites into use. Cutting taxes does the opposite; it rewards delay.”
Photo: Ziyao Xiong via unsplash
