Housing affordability has declined significantly over the past few decades. Slowly reducing negative gearing and capital gains, and switching to property taxes, could reverse this trend.
When people do downsize, financial incentives are generally not the big things on their minds. And so most of the budget’s financial incentives will go to those who were going to downsize anyway.
Housing experts writing for The Conversation largely agree on the government policies that are causing negative distortions in the market and the wider economy. And supply is not the key concern.
A combination of transit-oriented centres, inclusionary zoning and a special rate on land instead of stamp duty could make housing more affordable by cutting congestion, development and travel costs.
It would be easy to misinterpret a recent comment by federal Treasurer Scott Morrison as meaning that states and territories generate 90% of all revenue collected in Australia. That’s not the case.
Gladys Berejiklian’s first budget as NSW Treasurer includes some infrastructure goodies but misses an opportunity to reduce the state’s reliance on property taxes.
Scrapping stamp duty on property transfers altogether would make a meaningful, positive impact on the housing market. But don’t hold your breath; the NSW government is addicted to stamp duty.
The chancellor of the exchequer, George Osborne, has delivered the financial package he hopes will convince voters to deliver a Conservative majority in May 2015. Here, our team of academic experts responds…