Rezoning tax will help remove incentive for corruption from dodgy developers

first_imgRezoning tax will help remove incentive for corruption from dodgy developers Australian GreensThe Victorian Greens have welcomed reports that the state government will introduce a land rezoning tax in next week’s Budget, after the Greens proposed it at the last state election.Our current planning system is too vulnerable to corruption because of windfall gains.As recent IBAC investigations have made clear, the system sees developers jump into the pockets of government, and secure huge windfalls when land rezoning results in a massive increase in the value of land.This tax could disincentivise developers from making dodgy deals by ensuring they no longer make massive unearned profits.The Greens believe these windfall gains should instead be shared with the community, with additional revenue invested in public transport, schools and other infrastructure.Leader of the Victorian Greens, Samantha Ratnam, said that this simple mechanism would go to the heart of the corruption IBAC is investigating.She added it was high-time developers stopped jumping into the pockets of the government through donations and lobbying for favourable rezoning decisions, and that this tax would help remove the incentive for corruption.In the lead up to the 2018 state election, the Greens proposed a Windfall Rezoning Tax that would have been levied at 75% of the difference between the officially assessed land value before the rezoning compared to the land value afterwards.According to the Parliamentary Budget Office the Greens policy would have made the government approximately $1.5 billion dollars over the forward estimates.As stated by Leader of the Victorian Greens, Samantha Ratnam MLC:“When land rezoning results in a massive increase in the value of land, developers pocket huge windfalls and Victorians miss out.“It’s time for the government to stop rigging the economy to benefit large scale landowners and property developers with connections, and instead capture the value from rezoning so it works for the interests of all Victorians.“This tax is an important first step. By taking away the incentive of windfall gains, let’s hope it helps stop the flow of corrupting donations and stops developers trying to game the system in their favour.“The Greens have been calling for a tax like this for years, and we’re glad the government has finally listened.” /Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here. Why?Well, unlike many news organisations, we have no sponsors, no corporate or ideological interests. We don’t put up a paywall – we believe in free access to information of public interest. Media ownership in Australia is one of the most concentrated in the world (Learn more). Since the trend of consolidation is and has historically been upward, fewer and fewer individuals or organizations control increasing shares of the mass media in our country. According to independent assessment, about 98% of the media sector is held by three conglomerates. This tendency is not only totally unacceptable, but also to a degree frightening). Learn more hereWe endeavour to provide the community with real-time access to true unfiltered news firsthand from primary sources. It is a bumpy road with all sorties of difficulties. We can only achieve this goal together. Our website is open to any citizen journalists and organizations who want to contribute, publish high-quality insights or send media releases to improve public access to impartial information. You and we have the right to know, learn, read, hear what and how we deem appropriate.Your support is greatly appreciated. All donations are kept completely private and confidential.Thank you in advance!Tags:AusPol, Australia, Australian Greens, community, corruption, Economy, election, Game, Government, heart, infrastructure, property, public transport, revenue, tax, the Pocket, Transport, Victorialast_img read more