State and local government taxation revenue from real estate increased 10.5% in FY2015, according to the Australian Bureau of Statistics which show that more than half of state and local government taxation revenue comes from the property industry.

 

In FY2015, state and local government taxation revenue rose 7% to $89.3 billion, with $45.2 billion (51%) coming from property.

 

Since FY2000, total state and local government taxation revenue has increased 103%, compared to a 150% increase in property taxation. Taxes on property are split into two broad categories: taxes on immovable properties which includes land tax and council rates; and taxes on financial and capital transactions, which includes stamp duty.

 

The high level of taxation of the housing industry is central to the affordability issue, as government taxes and charges comprise over 40% of the cost of new dwellings.