The International Monetary Fund (IMF) released its Article IV report on Australia, which included wide-ranging discussion on Australia’s distorted property market, as well as gave tacit support to Labor’s proposed reforms to negative gearing and the capital gains tax (CGT) discount, as well as to replacing stamp duties with land taxes [my emphasis]:
Legacy supply-demand imbalances in the eastern capital cities are narrowing after strong residential investment growth. Nevertheless, house prices are expected to remain high, reflecting higher land scarcity and expectations of robust future demand for additional housing in these cities, given continued relatively high population growth…
