The property taxes paid by Australians have hit record levels. The official figures show that Australians pay more taxes on their real estate than their employers do for payroll and labour force.
Property taxes have a major impact on housing affordability as they are a big component of the cost of creating new dwellings.
ABS data has found that taxation revenue collected by all levels of government for property grew by over $8.5 billion in the last five years. Taxes on employers’ payroll have grown $3.9 billion in the same period.
In FY2018 revenue from property taxes totalled $30.3 billion, which was a $1.6 billion rise on the previous year. The biggest beneficiary is local government which had an $18.1 billion cut of the revenue generated last year, while the State Government portion was $12.2 billion.
According to ABS, “the sole source of taxation revenue for local governments is taxes on property” while state governments have taxes on property, employers’ payroll and the provision of goods and services.