NSW leads Australia in property tax hikes: PCA

NSW leads Australia in property tax hikes: PCA
NSW leads Australia in property tax hikes: PCA

The New South Wales government leads the country in property tax increases, according to the Property Council of Australia which cited the latest ABS data, adding further pressure on house prices amid the hot debate on affordability.

Taxes on property increased by 16 per cent, or $2.4 billion in NSW in 2015/16, leading Australia in terms of property tax hikes. Over the last five years, revenue from property taxes in NSW rose by 64.9 per cent, or $6.7 billion, the data shows.

The state’s tax share bolstered last year’s national property tax revenue where property taxes hit a record $49.5 billion across Australia. 

The PCA says the state government is leaning on the property industry to prop up its spending. 

“This a podium finish NSW does not want; with housing affordability the number one issue for this premier and her leadership team, it is concerning that they continue to squeeze the industry dry and are swimming in property tax revenue,” NSW executive director Jane Fitzgerald said.

“Higher taxes on property means higher house prices and more strain on first home buyers - this government is simply throwing fuel on the fire.

“With the average house price in NSW at around $900,000 and in parts of Sydney at well over $1 million, we need to be reducing taxes on the property industry, not leading the nation in terms of tax hikes.”

NSW leads Australia in property tax hikes: PCA

Over the past five years, revenue for property based stamp duty in NSW has doubled to more than eight billion dollars from around four billion dollars.

“When will enough be enough and we look at tax reform in this state to reduce the burden on the industry and look at sustainable, long term revenue streams rather than property taxes that rise and fall with the market,” said Fitzgerald.

“The upcoming state budget must be brave and bold and contain tax reform that releases the financial pressure on the people of NSW.”

Tags: 
NSW Property Tax

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