According to an SBS News report, under the Australian Government's planned tax changes, knocking down a house and putting up a duplex, or a block of flats gets you a 50% capital gains tax (CGT) discount. But will converting a McMansion into a duplex, or manor house, count as a "new build"? This would require an extensive rebuild. to convert one home into two three, or four, so I suggest should be allowed.
This could be a way to rapidly, cheaply & environmentally, increase the housing stock. It could include converting useless space in existing homes (studies, media rooms & garages full of junk), into useful living space. Built in garages could be replaced with carports having a roof made of solar panels, with space for batteries, car chargers & storage hot water systems.
We might see companies specialize in this form of home conversion. Most Australian households are 1 or 2 people. Rebuilding our hosing stock could provide homes better suited to this & eliminate the housing shortage.
A McManor house could be useful for a family as it grows and shrinks. However, this might need further tax reform. For example, reducing the current tax exemption on the family home, to an exemption on the average priced family home. There is no reason why someone with a $10M home should be able to sell it tax free. The median Australian home value is about $1M, with Sydney nearer $2M. So a limit on tax concessions could be set at $2M nation wide, or regionally at $1M to $2M.
