Around the world, housing authorities and government treasury/ finance/ taxation/income revenue and planning and infrastructure departments are struggling to find the ways and means of making housing more affordable without increasing national and state debt and deficits.
Australia is not immune to these issues, with Sydney identified as one of the most expensive cities in the world to purchase a house, with average prices exceeding $1 million in the 2016/ 2017 financial year.
Luxury housing tax, levied on new high-end residential properties and rentals, designed to feed a self sustaining fund dedicated to develop truly affordable units (either within new developments or in other locations around the city or jurisdiction is becoming more common. These taxation models can be equated to offset planting policies and practices in the management of the environment for major infrastructure and resource projects – i.e. we will approve you to do this action, but you need to do this in another part of the jurisdiction. Data management is critical to managing these luxury tax imposts.
Some Australian jurisdictions (Victoria, Queensland, and New South Wales) have introduced foreign investor tax increases to help slow down market forces, though it is debatable whether true housing affordability will result. The federal government is considering introduction of a broad pre-approval to purchase one new dwelling or vacant residential block. Others still consider stopping or limiting immigrations that will result in more affordable housing becoming available.