b'APRIL 20255.1 Make Housing Supply5.3 Stop Taxing Housing Supply to a Legislated Objective ofpay for Government Policy Failurethe Planning LawsTaxing the delivery of a good (in this case The minimum expectation for any planning systemhousing supply) when there is a shortage of that is to ensure there are homes for the population togood causing prices to be unaffordable, is a live in and places for people to work. But in NSW,manifestation of a taxation system that is broken.there is no legislative obligation placed on planningAffordable housing is needed because government administrators to do this.has failed to ensure sufficient approvals for supply We call for the establishment of targets alongto meet demand. In NSW, the political process has with the use the powers the government has, toled the planning system into a culture which has ensure all involved in the planning system deliver.manufactured scarcity of housing. Legislating objectives has a cascading impact onConsolidated revenue (general broad-based those involved throughout the planning system.taxation) should pay for infrastructure that They impact on decisions made by assessors andsupports population growth. Migration is essential the relevant planning authorities. to growing productivity and economic growth more 5.2 Coordinate the Rezoning ofgenerally. It should not be up to new home buyers to cover the cost of the new infrastructure while Land with Infrastructure Delivery those in established suburbs enjoy the benefits of their government funded infrastructure services. In an ideal world, the planners would work closely with Treasury to ensure there is sufficient funding5.4 Abolish Stamp Duty for city-supporting infrastructure. The zoning would be flexible enough to accommodate shiftsThe taxation system in all the states and territories in demand arising from exogenous shocks (like,(except the ACT), through their over-reliance for example, the advent of the COVID pandemicon stamp duty, represents a strong financial from 2020, the Global Financial Crisis fromdisincentive for moving house. This represents a 2008, or changes in technology and associatedmajor constraint on mobility. When people change work patterns). jobs, they dont move house because, for many, Without such a coordinated approach, policythere is nowhere for them to move into, and makers chase their tails. Zoning prevents mixedsecondly, they will be hit with a massive slug in the use development which would otherwise allowform of stamp duty. Instead, they commute longer for people to live closer to their workplaces. Itdistances directly impacting on the length of the also limits the development of age-appropriateworking day and environmental degradation. accommodation, so the ageing end up staying inMore often than policy makers like to admit, houses they have long since grown out of becausethey do it by car.they dont want to move away from the communityFormer Premier, Dominic Perrottet dipped his toe they know so well. into the stamp duty/land tax debate along with the former Treasurer of Victoria, Tim Pallas. However, such a change would require support from the Commonwealth which has shown zero interest in improving productivity through taxation reform since the Ken Henry Taxation Review was turned into a door stop in 2010.24'