Australian Greens Propose a Tax on Trophy Homes as Part of Its Affordable Housing Campaign

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The Greens want to impose a tax on trophy homes that would raise more than $32 million per year, primarily from billionaires, to pay for affordable housing and raise funds for other projects.

The housing and homelessness spokeswoman for the Greens in Newtown, Jenny Leong, stated that the tax would target those at “the extreme wealth end of the housing market.”

“There are people who have [homes worth] $20 million, $30 million, $100 million, and because they’re owner-occupied, they don’t pay any land tax on those whatsoever,” she adds.

“Let’s start talking about taxing the billionaires and the mega-mansions as a way to fund and invest more in affordable housing.

“We want a city for everybody, and we want people to be able to afford to live in our city. It shouldn’t just be about substandard key worker housing where people are given a tiny bedroom and shared facilities so they can service the needs of the rich and famous,” she added.

The proposal is called the Extreme Wealth Property Tax, which would levy a 4 per cent tax on owner-occupied mega-mansions with a land value over $10 million, or for an improved value exceeding $20 million.

Based on estimates, Sydney’s ten most pricey residences alone could generate $17 million in tax revenue, which would be used to build 86 affordable homes with two bedrooms per year.

The Greens’ analysis also revealed that, based on an average land tax of $1 million per property, taxing just 40 properties with values over $20 million would generate $32 million yearly.

This would pay for the construction of 160 two-bedroom units per year, which is more than a fourth of the total number of public and social housing units the NSW government built in the previous twelve months.

With home prices continuing to rise and wages remaining stagnant, lawmakers must find practical solutions for this problem to ensure a brighter future for all Australian citizens.

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