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Media Release: FEDERAL INACTION HAS INEVITABLY LED TO THE INEFFICIENT VICTORIAN ‘WINDFALL GAIN’ TAX


JA featured in SMH online 27 May 2021: https://www.smh.com.au/politics/federal/government-inaction-on-taxing-land-windfalls-is-hurting-australians-liberal-mp-says-20210526-p57vbw.html



“This is just the start,” Federal Member for Bennelong John Alexander OAM MP said when asked about his reaction to the newly announced Victorian real estate windfall gain tax.

“The Australian Capital Territory already do it, all other states will follow in time.”

“The Victorian tax is not linked to infrastructure funding, this is a fatal flaw.”

“Victoria’s tax will also severely inhibit capital gains tax receipts for the federal government, while at the same time, capturing the real estate windfall gains created by federally funded infrastructure and their associated re-zonings.”

The Age 27 May 2021

“This inefficient Victorian tax is a direct and inevitable result of federal inaction.”

“There should be a federally administered Value Capture mechanism linked to the funding of infrastructure. This should already have happened, yet here we are.”

“Taxes like Victoria’s are what you get when federal governments sit on their hands over this issue and refuse to consider a fairer federal version of it, one that can be applied broadly across Australia, and solely linked to infrastructure funding.”

“The federal government must work with the states for the benefit of all Australians.”

“Windfall gains derived from the stroke of a re-zoning pen and taxpayer funded infrastructure should be levied in some capacity.”

“I have been calling for a value capture mechanism, that funds infrastructure, to be established at the federal level for several years now.”

“This has been backed by numerous bipartisan parliamentary inquiries and recommendations, for which I was the Chair, calling for such a mechanism to be introduced.”

“Taxpayer funded infrastructure has led to enormous windfalls for speculators who have bought up around places like Castle Hill, and more recently Badgerys Creek. Billions of dollars, created by taxpayer’s investments, have gone into the pockets of a select few. Now, more than ever as we embark on massive spending on more infrastructure, we must have a mechanism for recouping the uplift in land prices to repay taxpayers and bring fairness to our tax system.”

“The federal budget has blown out, it’s on us to ensure future generations aren’t saddled with unfair debt and interest burdens when there are alternatives sitting right there on the table today for our consideration.”
Mr Alexander is the Chair of the Infrastructure, Transport and Cities Committee.

Inquiry links:

December 2020: https://www.aph.gov.au/Parliamentary_Business/Committees/House/ITC/Financingfasterrails/Report

Others:

https://www.aph.gov.au/Parliamentary_Business/Committees/House/ITC/DevelopmentofCities/Report

https://www.aph.gov.au/Parliamentary_Business/Committees/House/ITC/TransportConnectivity/Report_1

Ends.