The latest ABS data on Australian taxation revenues reinforces the need for comprehensive reform of our federal, state and local tax systems when it comes to property.
State and local governments collected more than $30 billion in property taxes 2017-18 – up by $9 billion over five years.
Local government relies exclusively on property taxes, while state governments draw around 14% of their tax revenues from property.
These figures don’t include the property industry’s contribution through company tax, capital gains, GST and payroll taxes.
Property Council of Australia chief executive Ken Morrison said: “Property taxes such as stamp duty are inefficient and make housing much less affordable.
“They can account for anywhere up to one-quarter of the cost of a property purchase in our major cities.
“Property taxes are a sugar hit for state and local government when markets are booming but they can also eat into budget bottom lines when the markets cool, as we’re now seeing in Melbourne and Sydney.
“We need a roadmap for reform in the medium term that focuses on taxes which are productive, competitive and sustainable,” Mr Morrison said.
Source: Property Council of Australia