Turnbull plan to tax developers on 'value capture'
AS THE property industry campaigns against any changes to housing tax breaks, a Turnbull government frontbencher has urged developers to back new "value capture" taxes.
In a speech to the Property Council of Australia, Major Projects Minister Paul Fletcher said the government would release a "discussion paper" on the issue in coming weeks.
He said developers who owned land near new transport infrastructure projects reaped land value rises from such developments, so they should contribute to the costs.
While it would "typically" be councils or state governments that imposed such a cost, the Commonwealth had "an important role in encouraging the use of value capture" - likely as a "condition of us providing funding for projects".
The plan was rejected by PCA chief Ken Morrison, who said the lobby group was "wary" of Canberra adding taxes, especially given the 2013 election promise to lower taxes.