A review of objections to residential land values used to assess State land tax: a case study of inner Sydney, New South Wales

Mangioni, V; MacDonald, H

A review of objections to residential land values used to assess State land tax: a case study of inner Sydney, New South Wales

Mangioni, V MacDonald, H

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Publication Type:: Journal Article
Citation:: eJournal of Tax Research, 2021, 19, (1), pp. 121-145
Issue Date:: 2021-01-01

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Field	Value	Language
dc.contributor.author	Mangioni, V
dc.contributor.author	MacDonald, H https://orcid.org/0000-0003-2105-5919
dc.date.accessioned	2021-11-29T05:24:59Z
dc.date.available	2021-11-29T05:24:59Z
dc.date.issued	2021-01-01
dc.identifier.citation	eJournal of Tax Research, 2021, 19, (1), pp. 121-145
dc.identifier.issn	1448-2398
dc.identifier.uri	http://hdl.handle.net/10453/151904
dc.description.abstract	New South Wales has experienced very intense affordability challenges during the 2012 to 2017 Australian housing price boom. While negative gearing has attracted the most attention in discussions of affordable housing in the media, other property tax elements also have market-distorting effects; here, we consider the effects of the land tax free threshold. We present the arguments for freezing the land tax free threshold, and examine the barriers to such a strategy, focusing on the likelihood of investor resistance to such a policy initiative by reference to objections to land values used to assess this tax. Using ten local government areas (LGAs) in Sydney as case studies, objections to land values used to assess land tax across seven years are measured against the land tax free threshold. Census data is used to measure changes in residential property investment activity across LGAs and study periods. The article demonstrates that volatility, in particular increases in land values, is a primary factor impacting objections to land values in New South Wales. The study concludes that carefully designed changes to the land tax free threshold could smooth the transition and reduce objections to land values, while eliminating the distorting effects that the land tax free threshold has had on the competition between investors and homebuyers.
dc.language	en
dc.relation.ispartof	eJournal of Tax Research
dc.rights	info:eu-repo/semantics/openAccess
dc.subject	1501 Accounting, Auditing and Accountability, 1801 Law
dc.title	A review of objections to residential land values used to assess State land tax: a case study of inner Sydney, New South Wales
dc.type	Journal Article
utslib.citation.volume	19
utslib.for	1501 Accounting, Auditing and Accountability
utslib.for	1801 Law
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building
pubs.organisational-group	/University of Technology Sydney/Strength - CCDP - Contemporary Design Practice
pubs.organisational-group	/University of Technology Sydney/e-Press
utslib.copyright.status	open_access	*
dc.date.updated	2021-11-29T05:24:57Z
pubs.issue	1
pubs.publication-status	Published
pubs.volume	19
utslib.citation.issue	1

Abstract:

New South Wales has experienced very intense affordability challenges during the 2012 to 2017 Australian housing price boom. While negative gearing has attracted the most attention in discussions of affordable housing in the media, other property tax elements also have market-distorting effects; here, we consider the effects of the land tax free threshold. We present the arguments for freezing the land tax free threshold, and examine the barriers to such a strategy, focusing on the likelihood of investor resistance to such a policy initiative by reference to objections to land values used to assess this tax. Using ten local government areas (LGAs) in Sydney as case studies, objections to land values used to assess land tax across seven years are measured against the land tax free threshold. Census data is used to measure changes in residential property investment activity across LGAs and study periods. The article demonstrates that volatility, in particular increases in land values, is a primary factor impacting objections to land values in New South Wales. The study concludes that carefully designed changes to the land tax free threshold could smooth the transition and reduce objections to land values, while eliminating the distorting effects that the land tax free threshold has had on the competition between investors and homebuyers.

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http://hdl.handle.net/10453/151904