'The more things change?' An overview of Australia's recent home ownership policies
When home ownership is the dominant tenure form in any country, the fiscal subsidies directed towards it need continual reassessment. This paper updates an earlier study on direct and indirect assistance to home ownership in Australia, a country with a mature home ownership sector. It examines the changing pattern of deposit assistance provided to first homebuyers and the trends in indirect assistance provided through the tax system, with tenure neutrality taken as the preferred tax expenditure benchmark. It was motivated by a significant growth in real dwelling values and changes to the tax system since the mid-1980s that have resulted in increased tax concessions to owner-occupiers. Indirect assistance is shown to dominate direct assistance and is poorly targeted, with the greatest amount of assistance being provided to those households who need it least. On a per household basis, outright owners receive more than five times the amount received by those with a mortgage, with high-income outright owners receiving an estimated benefit of close to $9,000 (€5,400) per annum. Home purchasers in the bottom 80 per cent of the income distribution received less than $500 (€300) per household per year.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 3 (2003)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/REUJ20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/REUJ20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Roger H. Gordon & James R. Hines, Jr. & Lawrence H. Summers, 1987.
"Notes on the Tax Treatment of Structures,"
in: The Effects of Taxation on Capital Accumulation, pages 223-258
National Bureau of Economic Research, Inc.
- Wood, Gavin A., 2001. "Are There Tax Arbitrage Opportunities in Private Rental Housing Markets?," Journal of Housing Economics, Elsevier, vol. 10(1), pages 1-20, March.
- Chris Heady, 1993. "Optimal taxation as a guide to tax policy: a survey," Fiscal Studies, Institute for Fiscal Studies, vol. 14(1), pages 15-41, February.
- Capone Jr., Charles A., 1995. "Taxation and Housing Tenure Choice: The Case for Moderate-Income Homeownership," Journal of Housing Economics, Elsevier, vol. 4(4), pages 328-349, December.
- Yates, Judith, 1994. "Imputed Rent and Income Distribution," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 40(1), pages 43-66, March.
- Joel Slemrod, 1989.
"Optimal Taxation and Optimal Tax Systems,"
NBER Working Papers
3038, National Bureau of Economic Research, Inc.
- Steven C. Bourassa & Donald R. Haurin & R. Jean Haurin & Patric H. Hendershott, 1993.
"Independent Living and Homeownership: An Analysis of Australian Youth,"
NBER Working Papers
4450, National Bureau of Economic Research, Inc.
- Steven C. Bourassa & Donald R. Haurin & R. Jean Haurin & Patric H. Hendershott, 1994. "Independent Living and Home Ownership: An Analysis of Australian Youth," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 27(3), pages 29-44.
- Bruce, Donald & Holtz-Eakin, Douglas, 1999. "Fundamental Tax Reform and Residential Housing," Journal of Housing Economics, Elsevier, vol. 8(4), pages 249-271, December.
- Anderson, John E. & Roy, Atrayee Ghosh, 2001. "Eliminating Housing Tax Preferences: A Distributional Analysis," Journal of Housing Economics, Elsevier, vol. 10(1), pages 41-58, March.
- Luci Ellis & Dan Andrews, 2001. "City Sizes, Housing Costs, and Wealth," RBA Research Discussion Papers rdp2001-08, Reserve Bank of Australia.
- D C Thorns, 1988. "New Solutions to Old Problems: Housing Affordability and Access within Australia and New Zealand," Environment and Planning A, , vol. 20(1), pages 71-82, January.
- Richard Voith & Joseph Gyourko, 1998. "The tax treatment of housing: its effects on bounded and unbounded communities," Working Papers 98-23, Federal Reserve Bank of Philadelphia.
- Richard K. Green & Dennis R. Capozza & Patric H. Hendershott, 1997. "Income Taxes and House Prices," Wisconsin-Madison CULER working papers 97-05, University of Wisconsin Center for Urban Land Economic Research.
- Follain, James R. & Ling, David C., 1991. "The Federal Tax Subsidy to Housing and the Reduced Value of the Mortgage Interest Deduction," National Tax Journal, National Tax Association, vol. 44(2), pages 147-68, June.
- Richard Voith, 1999. "Does the federal tax treatment of housing affect the pattern of metropolitan development?," Business Review, Federal Reserve Bank of Philadelphia, issue Mar, pages 3-16.
- D C Thorns, 1988. "New solutions to old problems: housing affordability and access within Australia and New Zealand," Environment and Planning A, Pion Ltd, London, vol. 20(1), pages 71-82, January.
- Green, Richard K. & Vandell, Kerry D., 1999. "Giving households credit: How changes in the U.S. tax code could promote homeownership," Regional Science and Urban Economics, Elsevier, vol. 29(4), pages 419-444, July.
When requesting a correction, please mention this item's handle: RePEc:taf:intjhp:v:3:y:2003:i:1:p:1-33. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.