Prosper Australia

Eyebrows were raised on Tuesday night when Jim Chalmers announced that the government would be cracking down on land banking by foreign owners. It was very pleasing to hear the Treasurer acknowledge land banking as an issue, especially considering "land banking" only yields 47 results on Hansard. But the issue isn't foreign owners land banking. It's land banking, full stop. We need to encourage the full productive use of our nation's greatest asset: land. Land banking is the antithesis of productivity. The most effective mechanism to control land banking is a land tax. We need a #TaxShift https://lnkd.in/gT_TKbYA

RELEASE: 2025 Budget betrays locked-out generation, kicks reform further down the road Prosper calls for bold action in the next Federal Budget after today’s pre-election budget delivered predictably cautious measures. Read our press release: https://lnkd.in/gVb-KGQv

Cam's piece is a must-read for those trying to get their head around the mechanics of housing supply. Starting construction is ultimately an economic decision: when people have more money (or access to credit), developers build more houses, and vice-versa. Planning rules have less to do with it than you might think. If we're going to continue to rely on the private sector to deliver housing supply (which is another conversation altogether), understanding how the housing market works is critical.

It’s Budget Day, and Australians will be tuning in to hear what plans the Treasurer has for us ahead of the election. But make no mistake—this is a pre-election budget, carefully designed to avoid scaring any horses. The real game in play is the election and, more importantly, what the next government will do in following budgets. The ABC voter survey shows that inequality is the top concern for Australians. The cost-of-living crisis isn’t just about individual struggles—it’s about how economic hardship is impacting society as a whole. A fair-go economy means families have enough to thrive, not just survive. Every child who goes to school hungry isn’t just missing out on opportunities that day; the effects of deprivation will follow them throughout their life. And that cost is borne by all of us, not just the child or their family. At the heart of this issue is our tax system. If we’re serious about ending inter- and intra-generational inequality, meaningful tax reform is non-negotiable. Australians will be watching closely—not just to hear what the Treasurer has to say tonight, but also how the Opposition Leader responds. This election, we must elect a parliament ready to take on the once-in-a-generation challenge of tax reform. Kicking the can further down the road isn’t an option. Read more about our tax reform ideas here: https://lnkd.in/ghKwttiQ ABC article: https://lnkd.in/g8Ttkv5X

The mainstream press and socials have been abuzz over the last few days about a SCANDALOUS new report that taxes make up 36-49% of the cost of a new home. That couldn't possibly be true, could it? No. Because it's not. More importantly, are high taxes the reason why house prices are so high? Also, no. Finally, if we got rid of the taxes, would it make prices go down? Again - and unsurprisingly at this point - no. Long story short: house prices aren't set by the cost of delivering housing; but by the highest amount the market will bear. If you remove property taxes - especially land tax and value capture charges that amount will not mean developers will drop their prices. It is correct that we should reduce taxes on productive activities like housing construction. That leaves more money in the pockets of those doing the real work to supply housing. We should shift taxes onto land and rezoning windfall gains in order to encourage faster supply to the market. The elephant in the room is always speculation. Why build a house on a piece of land when you can hold on to it for another 10 years and sell for land value gains? Land holding charges discourage this speculative behaviour and push land owners to develop faster, bringing supply on sooner. That, friends, is why the property lobby hates land taxes. Read more in our Briefing Note: Property taxes, rents and house prices. https://lnkd.in/gKnC8f3B

Young Australians! This election is about your future economic security. The policies decided in 2025 will shape housing affordability, job opportunities, wages, education, and the cost of living for years to come. If you're not enrolled to vote, you're letting others decide for you. 🏡 Housing: Will policies continue to inflate property prices, or will we see real action on affordability? 💰 Wages & Jobs: Will we get policies that support secure, well-paying jobs in a changing economy? 📈 Cost of Living: Will the government tackle rising prices, or will essential goods and services become even more expensive? Make sure you're enrolled before the deadline! Check your enrolment at AEC.gov.au. If you're 17, you can enrol now and vote when you turn 18. Your voice matters—don't sit this one out. Are you a "former" young Australian? Share this post with your favourite young person and help them get enrolled. #AusPol #YourVoteYourFuture #2025Election #TaxShift #CostOfLiving #YouthEnroll

The mainstream press and socials have been abuzz over the last few days about a SCANDALOUS new report that taxes make up 36-49% of the cost of a new home. That couldn't possibly be true, could it? No. Because it's not. More importantly, are high taxes the reason why house prices are so high? Also, no. Finally, if we got rid of the taxes, would it make prices go down? Again - and unsurprisingly at this point - no. Long story short: house prices aren't set by the cost of delivering housing; but by the highest amount the market will bear. If you remove property taxes - especially land tax and value capture charges that amount will not mean developers will drop their prices. It is correct that we should reduce taxes on productive activities like housing construction. That leaves more money in the pockets of those doing the real work to supply housing. We should shift taxes onto land and rezoning windfall gains in order to encourage faster supply to the market. The elephant in the room is always speculation. Why build a house on a piece of land when you can hold on to it for another 10 years and sell for land value gains? Land holding charges discourage this speculative behaviour and push land owners to develop faster, bringing supply on sooner. That, friends, is why the property lobby hates land taxes. Read more in our Briefing Note: Property taxes, rents and house prices. https://lnkd.in/gKnC8f3B

Stamp duty to land tax is back in the news. It's a simple and logical idea, but not so straightforward to implement. Managing the transition is key to any tax reform. Check out our report on the three main transition models and their trade-offs. https://lnkd.in/gwi8tPA

"Speculation is the private sector’s own speed limit on supply; it’s not a regulatory speed limit. The tax system is encouraging this behaviour at every turn." At the Community Tax Summit, Tim Helm argued that tax reform is the most effective long-term solution to our housing inequality challenges. Watch Tim's presentation alongside Saul Eslake, Alan Kohler, and Maiy Azize as they discuss housing - the great Australian divide. https://lnkd.in/eAtzYB3N

Without residential-residential rezoning windfall gains taxation the Victorian government's activity centre announcements represent a massive free giveaway of property rights. This socially created value should be captured and invested in infrastructure. “While we welcome efforts to increase housing supply, upzoning without value capture represents a giveaway to land speculators at the expense of the broader community,” Rayna Fahey, spokesperson for Prosper Australia said on Sunday. https://lnkd.in/g9TCC6Nj