Henry George down under: Urban development, land value capture and infrastructure in Australia

The chapter outlines Land Value Capture (LVC) in Victoria, Australia. Three broad categories are framed to understand how LVC mechanisms are implemented: land-based taxation, land-based levies on planning gains and land-based asset management. LVC is perceived as an efficient tool to raise public revenue for infrastructure despite politically divided views on it. Australian cities have recently seen large increases in population, primarily due to internal and overseas migration, which has contributed to urban expansion into fringe areas (greenfield growth corridors). To recoup part of the gains in the re-zoned areas into Urban Growth Boundaries (UGBs) and simultaneously fund the much-needed infrastructure requirements of these growing communities, the state of Victoria, in addition to conventional property taxes, introduced value capture mechanisms such as the Infrastructure Contributions Plan and the Growth Area Infrastructure Contribution. The Australian way is a hybrid model of international experiences in implementing LVC and this chapter provides a holistic overview of the LVC mechanisms.