Benefits

People would be better off if government revenue was raised by resource rentals rather than by taxes. Families would save between $200,000 and $400,000 during a working lifetime if everyone paid an annual levy on the resources they used instead of paying taxes.

What Resource Rentals will do for you:

Lower Prices

A large amount of the price of everything you buy is made up of tax. Some say between 32 – 50%! Resource Rentals cannot be passed on to the consumer of goods and services.

Prices of goods and services will fall. Removal of the 15 plus layers of taxation will reduce input costs by at least 32%.

Raise the level of wages

Wages are so low because of the competition between workers. How can wages rise to a higher level when there are thousands of unemployed people clammering to find work? Resource Rentals will get Australia back to work, and allow wages to rise to a comfortable level.

Make it easier to run a Business

Picture running a small business if there was: No meddling from tax collectors and no tax forms to fill out. No company tax, no sales tax, no GST, no FBT, etc. An economy where your customers had money in their pockets. No records to keep (except those you wanted for your own use).A resource rental based taxation system can deliver all this.

“I am prepared to concede that all taxes, with the exception of those on economic rent, have some [adverse] employment and economic growth effects.” – John Howard, Prime Minister of Australia.

Reduce Unemployment

Resource rentals are taxes on economic rent. It does not distort the pricing mechanism as it must be paid prior to production, to gain/ maintain access to a site. As opposed to taxes such as PAYE and the GST, taxes on economic rent do not damage employment or economic growth. Any tax that raises prices or makes it more expensive to employ people makes unemployment worse.

Our proposal does not in any way raise prices or add to employment costs. Our proposal is a tax on the advantage that people enjoy over others by virtue of access to our Nation’s natural resources. Once access to cheaper sites are possible, small business opportunites rapidly develop, particularly with the added bonus of greatly reduced tax compliance. Write one cheque p.a or fill out the GST’s BASS statements every three months?

Protect the Environment

Land is our nation’s most important resource. If people had to pay rental on the land they used, then they would take what they needed and leave the rest. The less land they used, the less rental they would pay. Can you see how this would give an incentive to wise use of resources, curbing urban sprawl.

Support Farmers

Farmers are not penalized by Resource Rentals. Farmers use low-priced rural land. Resource Rentals on such land are very low. Also, with land varying in value in accordance to its crop output, farmers seasonal incomes are reflected in the yearly site value they pay.

Eliminate tax Cheats

Does it annoy you that wealthy people are able to arrange their affairs so as to not pay their fair share of taxation? As long as we tax incomes or profits, people with access to professional advice will pay less than they should. Cheating on resource rentals is impossible. Every year you receive a notice for all the land you occupy just like council rates. There is no way land can be carried off overseas or hidden.

Save Money and Time

The personal compliance costs for our proposal are zero. There is no need to fill in any forms, keep any records, or pay an adviser to help you with your tax return. If our proposal is accepted, then your annual tax assessment arrives like a rate notice. You merely have to write the cheque.

Doesn’t that sound a lot better than the complexities of a tax return and the thousands of pages one must read to keep abreast of tax changes?

Ensure your Privacy

Have you ever been annoyed by the intrusiveness of Government? With our proposal Government does not make any enquiries of you. Your business, work, salary, banking and investments become entirely your own business.

One other thing. Our proposal removes the incentive to lie. Under the current system there is a huge financial reward to be dishonest. Under our system cheating is not rewarded.

Cut housing costs

A Resource Rental charge causes land prices in many areas to fall by removing the speculative component to today’s land prices.

If you are holding land because you want to use it – and not for profit or speculation – this is good. It means that you can purchase a site for your home or business much more cheaply.

Those land hoarders who so regularly dominate our press will be forced to use their resources productively. The added supply of housing stock this contributes to the market will push prices down in most places.

Remember that land constitutes 60 – 70% of all mortgage costs today, whereas in the 70’s land constituted only 30% of the total cost. Find out more on Land Supply/ Affordability pressures

You will need to pay tax on the land value, but your mortgage will be much lower to compensate.

Resource Rentals compared with other taxes

Resource Rentals are totally different in terms of effect than other taxes (GST, PAYE, excise, WST, duties, FID, BADT, FBT, CGT etc.). Resource rentals are (technically speaking) a collection of economic rent. They do not distort or penalize useful economic activity the way other taxes do.

Resource Rentals Other Taxes
Effect on the poor Weighs very lightly Hits the poor hard. The higher the percentage of your weekly wage goes on goods and services the harder you are hit. Accentuates the gap between rich and poor.
Avoidance Impossible An initiation to avoidance. The “black” economy in Canada has doubled since GST
Administration Simple precise and sure (like the rates). No record keeping or form filling Complex and difficult. Expensive help required to fill in return and keep records. Open to manipulation and interpretation.
Unemployment Does not damage employment Makes good and services cost more. Slows the economy. A burden to small business.
Land and Resource use Encourages full and careful use of land and resources No penalty on speculation or wasteful use of resources.
Initiative You earn it, you keep it. You do something we tax you.
https://prosper.org.au/our-policy/benefits/