Did you know that land increases in value when it’s zoned use changes? “Zoning” is permission from the government that controls how property is used and developed. Granting permission to develop land in new ways adds value to the land, even before any development has actually taken place.
This value is created by and belongs to the public, but it’s the private landowners who profit. This unseen giveaway hands vast sums to some of Australia’s wealthiest landowners. Instead, these development rights should be returned to the public by putting a fair price on these development rights.
In this episode of Re:CAP, Per Capita’s Research Associate Lucas Lewit-Mendes chats with Rayna Fahey, Executive Director of Prosper Australia, unpacking the links between taxing land, housing affordability and inequality.
Check out Prosper’s report on Development Rights here: https://www.prosper.org.au/development_rights/
And more info on Land Value Capture here: https://www.prosper.org.au/land-value-capture/
For more podcasts, research, events and updates from Per Capita, visit https://percapita.org.au/