The Property Council made several recommendations regarding property tax at the state and local level. Here's how the Henry Review responded.
The Government has indicated it is willing to debate these issues.
Recommendation: harmonise the property tax framework across jurisdictions
Henry Review Recommendations 51 to 54 call for the removal of stamp duty, including conveyancing duty, by adopting a broad based land tax that would eventually include all land.
It also recommends incremental improvements to the land tax regime by applying land tax on each holding (not the total holding of a taxpayer).
Recommendation: replace developer levies with alternative funding
The Henry Review's recommendation 70 calls for COAG to review infrastructure charges (i.e. developer charges), to ensure they are appropriately priced in housing developments. The Review should establish practical means to ensure that these charges are appropriate.
The Henry Review's recommendation 69 calls for COAG to review institutional arrangements to ensure that zoning and planning do not unnecessarily inhibit housing supply and housing affordability.
Recommendation: replace car parking levies with incentives designed to reduce traffic congestion
The Henry Review Recommendation 61 calls for Government to analyse the cost and benefits of congestion pricing on toll roads that should apply to all vehicles using congested roads.
Recommendation: capitalise the cost of delivery for fire services levies equitably
The Henry Review's recommendation 79 calls for fire services levies on insurance products to be abolished. Insurance products should be treated like other services and subject only to a consumption tax.
Recommendation: ensure utilities for non-residential property are charged on a user-pays basis
The Henry Review recommendation 81 calls for Government to undertake a systematic review of all user pays charges and minor taxes against the principles set out in this report.
