Stamp duty reforms could provide funding stream for rail loop first stage
However, a key challenge against the idea, the government’s owners, how quickly to encourage land taxes and policy can now allow a 10 -year transition time, he said.
Infrastructure Australia questioned whether the capture of value would increase $ 11.5 billion allocated for the railway cycle, and suggested that the federal government should not provide more funds without further analysis.
Economists and treasurers are typically careful against the default taxes, because the system eliminates flexibility from budget decisions and votes that cannot be used elsewhere.
However, Hayward said that such taxes were politically popular because people could see value in certain services such as mental health reforms or those currently present for firefighters.
“If you just go, ‘We bring a tax’, nobody likes it … Ironic, the fact that economists tend to against it, but politically, is the best way to get a new tax,” he said.
Speaking in Parliament on Tuesday, Treasurer Jaclyn Symes chose opportunities to collect income from commercial properties.
“There will be extremely attractive places for SRL regions, businesses and commercial properties, and prices will grow over and over again, especially as more and more of this project progresses,” he said.
“We have been very clear that we will try to capture the value of this rise from the beginning.”
Allan said the government’s value -capture targets are well known and that it would not exclude taxes as part of this policy.
“We will have more to say about these mechanisms because the work is completed,” he said. “We’re doing this job right now.”
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Evan Mulholland, spokesman for the opposition major projects, said the idea of using the current income of the railway cycle did not pass in case of work.
“The public opinion of the Victorian era deserves not a government that invented new ways to raid the tax base of the state to finance a project that it cannot be presented, but deserves transparency and responsible financial management,” he said.
Peter Tulip, Chief Economist of Independent Studies, said that income resources and expenditures are usually two separate government options, but assumptions have taken some of the decision recruitment.
However, he said that people found such charges fair because they asked the projects to pay an important share of their costs.
“If you don’t calibrate [value capture]Especially if the charges are too high, it may be a big problem. ”
Linda Allison, General Manager of Victoria Institute of Urban Development, Australia, said that the current real estate tax environment has made the scope of value capture uncertain.
“Already land tax, transfer tax, foreign buyer additional duty, a decrease tax, council rates, developer contributions and an absentee owner has an additional fee. When it comes to value capture, what else is left?” he said.
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