b'JULY 2020NSW Home Ownership Rate by AgeLatest available data is 2017-2018908070605040301980 1985 1990 1995 2000 2005 2010 201565+ 55-64 45-54 35-44 25-34 , May 2020, Figure 20, p27. Figure 1Source: NSW DPIE, A Housing Strategy for NSWFact BookFIGURE 1 - Source: NSW DPIE, A Housing Strategy for NSWFact Book, May 2020, Figure 20, p27.Sources: ABS Survey of Income and Housing (SIH); ABS Household Expenditure Survey (HES); DPIE calculationsIt is easy to see why state governments have beenA land tax can be easily adjusted to be more-or-slow to shift away from Stamp Duty. Its deliveredless progressive, or to encourage certain land uses rivers of gold to treasuries during the boom times ofover others, within the bounds of maintaining the high property inflation weve more or less enjoyedtaxs economic efficiency by keeping the number of since the 1991 recession.exemptions to a minimum. But the economy is about to go into recession andA broad-based land tax is an efficient mechanism the property market will decline, making Stamp Dutyfor funding infrastructure, as it is based on the a far less reliable source of revenue. Over a 4-yearunderlying land value, which will increase with budget cycle, there will be a double hit to Stampthe delivery of new publicly funded infrastructure Duty revenue as the number of transactions reduceor rezoning. It is more effective in this respect than and there is a fall in property prices, which are theforms of value capture that focus on individual basis of Stamp Duty value.sites or projects with implications for equity and By contrast, a broad-based land tax is less volatileimplementation, particularly given the complexity and more predictable. An analysis by Coates andand subjectivity associated with identifying and Nolan for the Grattan Institute found that an annualquantifying the factors that contributed to the flat rate tax of 0.05% ($5.00 on every $1,000) onvalue uplift.unimproved land value would be sufficient to fund the abolition of Stamp Duty in NSW. 696 Coates, B. and Nolan, J., NSW should swap stamp duties for a broad-based property tax, Grattan Institute, Dec,2009, p8.'