Hi Valen, I do not see any problem with land banking itself - in fact it can be efficient if it leaves room for future developments.
It is true a high land tax wouldn't necessarily make land any cheaper, because even though the capital cost would be cheaper the servicing cost would be higher. However, I would think this would make it less attractive to land bank - subsequently reducing demand from investors and making it more affordable for working class people (they have to be working of course to pay the high land tax).
I do not know how they have implemented land tax in Qld but if it is anything like they have implemented where I live they have not done it properly and it unfairly penalises some poeple over others.
GMT I used the word 'ownership class' to paint the picture of an extreme society where only the privilege can own land while the productive cannot - this made up world is unsustainable so you can either have a revolution or just make the economic system fairer through wealth transfers by taxing the privileged (which is what happened 200 years ago in England). In Australia you could also say the baby boomers are a bit like the ownership class - with all their investment properties etc. - so yes in one way you are part of the ownership class and the masses are jealous and want your hard earned investments for themselves.
Play2win - look at the government budgets (state and federal) and see where the money is going. Only a few percent goes to shared infrastructure such as roads - if you have private health insurance and send your kids to private schools (half of Australia?) then basically all your taxes you pay now you receive nothing for them other than a transfer of wealth to 'bludgers'.
