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Policy Pillar Three

Taxation, Financing, & Incentives

Government should better capture the value development creates, increase supply, and ensure equitable housing allocation and outcomes.

The state government has a powerful set of tools at their disposal to ensure better provision and allocation of a more diverse housing supply. 

The reforms advocated by YIMBY Melbourne, most notably under our Land Use & Zoning pillar, will create a great deal of economic value for Victoria. It is imperative that the government is able to capture a portion of this value, to ensure equitable redistribution. The policy areas explored under this pillar encourage a housing stock, including large investments in public housing, and the provision of social and affordable housing stock. 

Better utilisation of state government taxation, financing, and incentives will enable the government to unlock new revenue streams, all while creating additional private and public housing supply. 

Taxation, Financing, & Incentives

Policy areas

Value capture and windfall gains reform

The government should capture a share of the value created through inner-city residential upzoning. A major portion of that value should be allocated to ambitious public housing builds.

State underwriting & equity in housing projects

The government should smooth out construction industry cycles by underwriting and taking equity in select projects, increasing public housing supply alongside private development.

Inclusionary zoning incentive expansion

Ensure the provision of social and affordable housing through in-kind and tangible inclusionary zoning, with strong incentives for tangible inclusionary zoning to create better social outcomes.

Alternative housing incentive expansion

We should accelerate the adoption of globally successful models of housing, like build-to-rent and cohousing, through expanded incentives.

Developer contribution reform

The government should ensure that any developer contributions are appropriately allocated to infrastructure around the build, and that a portion of all contributions are hypothecated to increasing public housing stock.

Stamp duty reform

Stamp duty is a barrier to both new housing supply and the efficient allocation of existing homes. Stamp duty on residential property should be replaced with an annual land-tax.

Equitable housing taxation

The government should implement the Henry Report recommendations on capital gains and negative gearing. Tax deductions and benefits should incentivise new housing rather than just enrich incumbents.

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Policy Pillars

Land Use & Zoning

Melbourne is Australia's fastest growing city. It should also be the most affordable, liveable, and sustainable.

Planning Processes & Governance

Our planning system should create the Melbourne of tomorrow, not the Melbourne of yesterday.

Taxation, Financing, & Incentives

Government should better capture the value development creates, increase supply, and ensure equitable housing allocation and outcomes.

Heritage & Historical Restrictions on Land Use

Melbourne is Australia's most heritage-protected city. We must allow the next generation to build the city in which they want to live.