Urban Taskforce Australia has strong concerns regarding the Policy’s stated intention for 50% value capture % of any uplift in a development site being a “starting point for negotiations”.
Value capture will kill off housing projects
The value capture policy, described in Ryde’s draft documents, is effectively a “betterment” tax being levied on perceived value increases, without any apparent attempt to consider associated costs.
Value capture taxes are detrimental in nature and unworkable in practice.
Any increase in density is ultimately to the benefit of the landholder, rather than the developer, increasing the purchase price that the former can demand, before any potential return comes to the latter. A broad based and tax is a far more sensible way to levy a tax which recognises and self-adjusts for investments in nearby infrastructure or re-zonings which include uplift in height or FSR.
Council’s policy seeks no recompense from the landowner, only from the developer, who cannot renegotiate the land purchase price to overcome the loss.
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