Pathways to housing tax reform

How does the taxation system impact on the housing market, and how does this compare with the impact of the taxation system on other aspects of wealth?

This AHURI Inquiry will establish a viable, evidence-based strategy for breaking the political deadlock afflicting Australian housing tax policy. It will identify a pathway to reform that balances political imperatives against technical policy objectives by integrating practical policy analysis with economic modelling in three central elements of Australia’s housing tax regime.

The final report and the three supporting research projects for this Inquiry are now complete.

You can download the completed final report.

You can view details of the supporting research projects and download the completed reports below.

  • Glenn Byres, Property Council of Australia
  • Anne Campbell, Department of Family and Community Services, NSW Government
  • Cassandra Goldie, Australian Council of Social Services
  • Glen Hepburn, Department of Treasury and Finance, Victorian Government
  • John Hewson AM, Australian National University
  • Brian Howe AO, University of Melbourne
  • Paul McBride, Department of Social Services, Australian Government
  • Greg Smith, University of Melbourne Law School
  • Peter White, Department of Health and Human Services, Tasmanian Government
Pathways to state housing and land tax reform

This project develops and models viable ‘pathways’ for state and territory governments to transition from transaction based conveyance duties to a broad-based recurrent land taxes. Such reforms would enhance economic efficiency, State financial sustainability and housing affordability.

Led by: Richard Eccleston
Project status: Complete, download the report.

Income tax treatment of housing assets: An assessment of proposed reform arrangements

This project will model pathways to reform the income tax treatment of property assets, including capital gains tax provisions and negative gearing. The project will analyse the distribution of housing tax expenditures under current tax provisions, as well as the potential distributional and behavioural impacts of alternative reform scenarios.

Led by: Alan Duncan
Project status: Complete, download the report.

Retirement savings policy and asset portfolio decisions of Australian households, 2002-14

Housing in Australia is characterised by advantageous tax treatment relative to other asset classes. This research project provides insights into the asset portfolio decisions of Australian households and the increasingly important issue of how the tax/transfer system influences housing choices for retirement.

Led by: Stephen Whelan
Project status: Complete, download the report.