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18. We have a housing shortage. How will taxing housing get more houses built?

18. We have a housing shortage. How will taxing housing get more houses built?

Answer

Land is included as an asset – any land owner would have to ensure their land generates a minimum taxable return. This change would remove the incentive for “land banking” – sitting on unproductive land waiting for capital gain. That in turn would incentivise more houses to be built in areas where demand is high. 

Showing 2 reactions

  • Andi Shen Liu
    commented 2016-12-07 17:26:12 +1300
    If the only reason is land banking, why don’t we just legislate to have the wealth tax on unoccupied homes?

    The main reasoning I see behind this is that rental income is taxed while self-rent is not – why don’t we help subsidise everyone equally by scrapping rental tax altogether?
  • Oliver Krollmann
    followed this page 2016-12-07 10:26:23 +1300