Renegade Economists Show 421

As broadcast on the 3CR airwaves 5.30 – 6pm Wednesdays.
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Show Notes
One mistake and your mp3 is history on the podcast feed. Sorry bout that, we are working on it. Listen via Mixcloud instead (below). Braybrook storyteller Lucy tells of a fire at derelict home and the cost to the community after Karl runs through recent economic trends, events as outlined below.

Our big Speculative Vacancy report is out Wednesday the 9th. Come to a packed event.

Free Demolition? by Renegade Economists on Mixcloud

Related Links

Value Capture Parliamentary submission, presentation.

NSW roads minister on VC
Roads Minister Duncan Gay hints light rail route will be built in Sydney Olympic Park.

Sources have said the route announcement is on hold until the state government determines how to fund the construction through “value capture”, a finance mechanism that seeks to regain the value uplift properties get from being located near public transport.

Media release

Capturing the value of transport infrastructure
New inquiry

The Standing Committee on Infrastructure, Transport and Cities has launched an inquiry into increased transport connectivity and economic activity, with a particular focus on value-capture as a funding mechanism for infrastructure development.

The terms of reference for the inquiry are:

Identifying the likely impact on property values and property-related tax revenues as a result of transport connectivity;

examining options for the application of value-capture mechanisms to sustainably fund transport infrastructure;

considering means, including legislative and administrative actions, by which government and the private sector can best utilise value-capture funding mechanisms;

considering the appropriate roles of each of the three levels of government in establishment sustainable value-capture funding mechanisms for planning and infrastructure construction;

examining any international experiences of the delivery of high speed rail projects by value-capture methods and the impact of high speed rail on city and regional development;

examining methods of implementing value-capture in both greenfield and brownfield developments; and

examining ways to capture future value opportunity when reserving transport corridors.

The committee invites interested persons and organisations to make submissions to the inquiry addressing the above terms of reference. Submissions close on Friday 12 February 2016.

The excuse to tax the family home for which states have been waiting – Michael Pascoe

I can hear the chorus of state treasurers now: “Sorry, voters, I didn’t want to introduce a broad land tax, but that mean federal government made me do it.”

An important speech by the Federal Minister for Major Projects, Paul Fletcher, has given fair notice that the Turnbull government will force the states and territories to capture the increased property values that follow improving infrastructure.

And a good way to achieve “value capture” is via a broad, no-exceptions land tax. Hence the excuse the states need to grow a spine and introduce the most obvious of the major tax reforms that the nation needs.

It has been a glaring missed opportunity for states not to capture the increased value created when infrastructure is improved. There are experiments around the edges by some states and local governments – the humble development levy is a form of “value capture” – but nobody has been politically game enough to take it seriously.

As the situation generally stands now, if the government builds a new train line, it provides a windfall capital gain for those people owning land around the new station. Developers tend to capture a disproportional share of subsequent rezoning and, in the case of owner-occupiers, it’s a totally tax-free boost courtesy of other taxpayers.

…. The commonwealth and states can get fancy with financial engineering of uplift bonds or whatever, but the underlying factor is the increased value of the land. Go for it and blame the feds.

Fire devastation Braybrook – as told by Lucy.
Detail on the Fire Services Levy

Paris climate – LVT holistic move away from commodification of the earth to productive future

Oz to double our r n d to $200m
whoa!

I almost got to this
Gina’s 1st iron ore to be sold $7 below cost price, then had a 7 day shipping ban imposed @$50k p/d, then ore price drops further overnight.

Glossary

Here’s the Twitter and watch #LVT, #commons, #rentier.

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