State and local governments raised more than $ 30 billion in property taxes in 2017-18, an increase of $ 9 billion over five years. This latest Australian Bureau of Statistics data highlights the need for comprehensive reform of federal, state, and local property taxation systems, according to the Property Council of Australia.
Property taxes such as stamp duty, for example, are inefficient and make housing much less affordable, said Ken Morrison, the director general of the Property Council of Australia.
"They can represent anywhere up to a quarter of the cost of a real estate purchase in our big cities," he said.
Morrison also warned that while property taxes are a "blow" for state and local governments when markets are booming, they can also affect the bottom line when markets cool down (like Melbourne and Sydney)
"We need a road map for medium-term reform that focuses on productive, competitive and sustainable taxes," Morrison said.
Local governments depend exclusively on property taxes, while state governments collect almost 14% of their tax revenue from property. These figures do not include the real estate industry's contribution to corporation tax, capital gains tax, goods and services tax, and payroll taxes.
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