CoPS/IMPACT Working Paper Number G-330

Title: Property Tax Reform: Implications for Housing Prices and Economic Productivity

Authors: Jason Nassios and James Giesecke


Australia has high housing prices by world standards. Australian state and local governments also have a high reliance on a variety of property taxes. This has generated calls for state tax reform. However, with property prices high, a concern of policy makers is that property tax reform might push house prices higher still. We investigate the effects of seventeen property tax reform options, with a particular focus on potential trade-offs between efficiency benefits and house price impacts.

JEL classification: C68; E62; H2; H71; R38

Keywords: CGE modelling; Immovable property tax; Recurrent property tax; Housing prices; Excess burden

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