Housing; land
- eg, stamp duty; land tax; negative gearing; council rates; first home saver accounts; rental affordability
scheme
- see also Assets; Capital gains; Estates
Renovating Housing Policy
Jane-Frances Kelly, Grattan Institute (October 2013).
Housing policy in Australia is overdue for a major renovation. Government tax and welfare policies, by favouring home owners and property investors over people who rent, are worsening the divide between Australians who own housing and those who do not. The divide is income-based and it is generational. While overall home ownership rates are stable or declining slightly, declines are much sharper among those with low-incomes or aged under 45.
This report looks at our complex housing system as a whole. By quantifying the major government outlays on the private housing system, it reveals the cumulative impact of housing policies both on individual choices of where and how to live, and on productivity and inequality in our cities.
Submission to the Work and Pensions Committee's inquiry on support for housing costs in the reformed welfare system
Stuart Adam, James Browne and Robert Joyce (September 2013).
This paper focuses on the likely effects and merits of the specific reforms introduced under the current UK government, which include changes to the local housing allowance, uprating of local housing allowance rates capped at CPI inflation, cuts to housing benefits for working-age tenants 'under-occupying' social housing, the benefits cap, and the localisation and funding cut for council tax support.
New Estimates of Tax Reform’s Effect on Housing Prices
Benjamin H. Harris, The Urban Institute and Brookings Institution Tax Policy Center (September 2013).
The impact of tax reform on housing prices has traditionally been studied by examining the user cost of capital - the after-tax cost to the homeowner per unit of housing. This brief summarises findings from a new "discrete period" approach which considers the time element of housing investment and accounts for one-time transaction costs, such as transfer taxes, settlement fees, and realtor commissions. Under this framework, tax reform yields much smaller estimated house price declines and some reforms are estimated to actually boost housing prices.
Taxation of Native Title and Traditional Owner Benefits and Governance Working Group Report to Government
Australian Government Treasury (July 2013).
The Taxation of Native Title and Traditional Owner Benefits and Governance Working Group was established to examine existing arrangements for holding, managing and distributing land related payments, and to identify options to strengthen governance and promote sustainability. Its particular focus was on the tax treatment of current arrangements and of proposed options for holding, managing and distributing land related payments.
Tax Reform, Transaction Costs, and Metropolitan Housing in the United States
Benjamin H. Harris, Tax Policy Center (June 2013).
This study analyses the effect of tax reforms on housing prices in selected cities in the US. Using a model that incorporates transaction costs, the study finds (1) the president's proposed limit on itemized deductions would have a minimal impact on housing prices; (2) eliminating itemized deductions altogether would cause housing prices to fall markedly; (3) limiting the mortgage interest deduction while providing a flat closing credit can boost housing prices; and (4) the higher 2013 tax rates are unlikely to substantially boost housing prices. Together, these findings suggest that plausible tax reforms will have only a modest impact on housing prices.
How Would Reforming the Mortgage Interest Deduction Affect the Housing Market?
Margery Austin Turner, Eric Toder, Rolf Pendall, and Claudia Ayanna Sharygin, Tax Policy Center (26 March 2013) .
Opponents of MID reform warn that reducing the deduction would undermine the value of owner-occupied homes and impede the recovery of the depressed housing market. The best available evidence predicts far less dire effects and suggests that some reforms could actually bolster the housing market recovery. However, the results are far from definitive.
Options to Reform the Deduction for Home Mortgage Interest
Amanda Eng, Harvey Galper, Georgia Ivsin, Eric Toder (March 2013).
Taxpayers can currently deduct interest on up to $1 million in acquisition debt used to buy, build, or improve their personal residences and interest on up to another $100,000 of home equity loans. This brief estimates the effects on revenue and the distribution of the tax burden of proposals that would replace the current mortgage interest deduction with a non-refundable interest credit of either 15 or 20 percent of interest and reduce the ceiling on the amount of all eligible mortgage debt to $500,000.
Sharing the Wealth of the Lucky Country: What This Means for Housing
Judith Yates (April 2012).
Fair Share: The Tax Edition
VCOSS (September 2011).
Outlines how tax can change the way disadvantage is caused and addressed, and what changes VCOSS hopes for in the National Tax Forum.
Mission Australia Statement of Reform Priorities
Mission Australia's statement of taxation reform priorities in preparation to the Tax Forum 4-5 October 2011.
Associate Professor Miranda Stewart Statement of Reform Priorities
Miranda Stewart (September 2011).
Miranda Stewart's statement of taxation reform priorities in preparation to the Tax Forum 4-5 October 2011.
Equal Rights Alliance Statement of Reform Priorities
Marie Coleman and Ruth Medd (September 2011).
Equality Rights Alliance's statement of taxation reform priorities in preparation to the Tax Forum 4-5 October 2011.
Anglicare Australia Statement of Reform Priorities
Kasy Chambers (September 2011).
Anglicare Australia's statement of taxation reform priorities in preparation to the Tax Forum 4-5 October 2011.
Jobs Australia's Statement of Reform Priorities
David Thompson (September 2011).
Jobs Australia's statement of taxation reform priorities in preparation to the Tax Forum 4-5 October 2011.
United Voice Statement of Reform Priorities
Louise Tarrant (September 2011).
United Voice's statement of taxation reform priorities in preparation to the Tax Forum 4-5 October 2011.
Community and Public Sector Union Statement of Reform Priorities
Nadine Flood (September 2011).
Community and Public Sector Union's statement of taxation reform priorities in preparation to the Tax Forum 4-5 October 2011.
Community Housing Federation of Australia
Adam Farrar (September 2011).
Australian Community Housing Federation of Australia's statement of taxation reform priorities in preparation to the Tax Forum 4-5 October 2011.
National Shelter Statement of Reform Priorities
Adrian Pisarski (September 2011).
National Shelters' statement of taxation reform priorities in preparation to the Tax Forum 4-5 October 2011.
Uniting Care Wesley Adelaide Statement of Reform Priorities
Simon Schrapel (September 2011).
Uniting Care Wesley Adelaide statement of taxation reform priorities in preparation to the Tax Forum 4-5 October 2011.
Australian Council of Trade Unions Statement of Reform Priorities
Jeff Lawrence (September 2011).
Australian Council of Trade Unions' statement of taxation reform priorities in preparation to the Tax Forum 4-5 October 2011.
Australian Council of Social Services Statement of Reform Priorities
Dr Cassandra Goldie and Peter Davidson (September 2011).
Australian Council of Social Services statement of taxation reform priorities in preparation to the Tax Forum 4-5 October 2011.
Economic Policy Reforms: Going for Growth
OECD (7 Apr 2011).
The OECD's latest Going for Growth report, which finds that Governments must reform the underlying structure of their economies to boost economic growth and create jobs. Recommendations include tax reform, with a specific focus on labour and housing taxes. Specific priorities for Australia are identified on page 70.
Summary of ACOSS proposals, Henry Review recommendations
Australian Council of Social Service (5 Apr 2011).
This is a brief summary of the Henry Review’s key tax reform proposals and compares them with
those advanced by ACOSS, and the Government’s response.
Housing Finance and Financial Stability
International Monetary Fund (6 Apr 2011).
Chapter 3 of the IMF's 'Global Financial Stability Report', which suggests that subsidies to first-time home buyers, tax deductibility of capital gains on housing, and government provision of mortgage guarantees or credit tend to amplify house price swings by exacerbating both the boom and the subsequent bust.
The role of housing tax provisions in the 2008 financial crisis
Thomas Hemmelgarn, Gaetan Niodeme and Ernesto Zangari, European Commission (11 Mar 2011).
The 2008 financial crisis is the worst economic crisis since the Great Depression of 1929. It has been characterised by a housing bubble in a context of rapid credit expansion, high risk-taking and exacerbated financial leverage, ending into deleveraging and credit crunch when the bubble burst. This paper discusses the
interactions between housing tax provisions and the 2008 financial crisis. In particular, it reviews the existing evidence on the links between capital gains taxation of houses, interest mortgage deductibility and characteristics of the crisis.
Issues from the Henry report on Australia's future tax system for housing policy
Craig Johnston, National Shelter (15 Dec 2010).
A report reviewing aspects of the Henry Tax Review in relation to Housing, as a discussion point in the leadup to the National Tax Forum in October 2011.
Tasmanian State Tax Review discussion paper
Tasmanian Department of Treasury and Finance (6 December 2010).
A discussion paper by the Tasmanian Tax Review Panel, which describes current State taxation arrangements and provides questions to guide submissions to the Review. Includes chapters on land and property taxes, payroll tax, gambling taxes, motor taxes and taxes relating to climate change.
More details on the Review can be found at: www.treasury.tas.gov.au/statetaxreview
Henry on housing: the Australia’s future tax system reports
Shelter NSW (24 September 2010).
An analysis of the Henry Tax Review recommendations regarding housing and the outcomes of the Government's possible responses to them.
Housing and tax: the triumph of politics over economics
Judith Yates (June 2010).
An assessment of the current tax and transfer system and why this needs to be amended to take Australia closer to a fair and sustainable housing system.
Assets for All
Gerard Brody and Elizabeth McNess, Brotherhood of St Laurence (December 2009).
A brief overview of current tax concessions and other government support for savings, housing and other assets.
Debt Bias and Other Distortions: Crisis-Related Issues in Tax Policy
International Monetary Fund (12 June 2009).
Tax issues relating to the global financial crisis, including tax treatment of borrowing and housing.
Taxation, Social Justice and Economic Development
Julian Disney, Director - Social Justice Project (3 April 2009).
Paper delievered at the Australian Council of Social Service (ACOSS) National Conference.
Includes workers, families, housing, transport, savings.
Tax Increment Financing to fund infrastructure in Australia
PriceWaterhouseCoopers (Apr 2008).
A report commissioned by the Property Council of Australia on the viability of Tax increment financing (TIF) as an infrastructure funding mechanism.
