Extreme Wealth Property Tax
Tackling economic inequality and delivering affordable housing
As part of the Greens plans to tackle growing housing inequality and the chronic lack of affordable housing in NSW, we will introduce a new land tax on high-end residential properties, increase and expand the existing land tax payable on investment properties and abolish the land-tax concessions being handed over to big developers under the cover of ‘build-to-rent’ schemes that don’t deliver affordable housing.
The Greens’ package will create more social and affordable housing - at the expense of those who are extremely wealthy and can absolutely afford to pay.
NSW is in the middle of a serious housing crisis and the inequality gap is widening, but instead of addressing this crisis, the Liberals and Nationals continue to provide special treatment and tax breaks for big investors. They are also failing to create more public, social and affordable housing.
The Greens believe that those who own and live in extremely expensive properties - as well as those who have big property portfolios - should be required to pay their fair share so that the government can make housing affordable for those who are struggling. There is a desperate need for more public, social and affordable housing to address the risk of homelessness faced by First Nations people, older women, disabled people and survivors of domestic violence.
Our ‘Extreme Wealth Property Tax’ will require owners of residential owner-occupied properties with a land value of more than $10 million, or an improved value of more than $20 million, to pay a flat 4% land tax. The Greens are also committed to increasing the rate of land tax payable above the Premium Threshold by anyone who owns property that is not their principal place of residence from 2% to 5%1. Additionally, we will expand this tax to include any investor who owns 8 or more residential properties.
THE GREENS WILL:
- Introduce a new land tax on owner-occupied residential properties with an unimproved land value over $10 million or an improved value over $20 million at a flat 4% of the improved value.
- Increase the rate of land tax payable on non owner-occupied properties and land that meets the NSW government Premium Threshold to 5% from 2%, and expand the Premium Threshold to include investors who own more than 8 residential properties.
- Abolish the build-to-rent 50% land tax concession unless these developments yield at least 30% ongoing social and affordable housing on private land and 100% on publicly owned land.
- Maintain existing hardship deferrals for residential land and exemptions on primary production lands and conduct an independent review of other exemptions.
- Use all revenue raised by this tax to build or purchase more social and affordable homes.
THIS EXTREME WEALTH PROPERTY TAX PACKAGE WILL DELIVER MORE AFFORDABLE HOMES
As an example, based on the Greens’ new land tax for just 10 extremely expensive properties in Sydney (listed below in Figure 1), this would fund the creation of some 86 dwellings each year.
$17,160,000 in land tax would be raised from just 10 extremely expensive properties in Figure 1 would yield approximately 86 x 2-bedroom social housing units every year.
1Premium Threshold in 2022-23 FY is $5,925,000. See list of taxable property at Figure 2 below. Revenue NSW - Who Pays Land Tax? Taxes, Duties, Levies, Royalties