Is Taxation Waning Property Investment?: A Case Study
||Is Taxation Waning Property Investment?: A Case Study
||14th Annual European Real Estate Society Conference in London, UK
||Over the past quarter of a century, the level of taxation and other government charges from property has grown in Australia. The growth of property prices has led to more taxes, however the growth of income to the government has grown at a faster rate, partly because the rates have not been adjusted and because there have been new taxes introduced which impact on property. Early settlement in Australia had “excise and customs forms of taxes”, but no taxation on property whatsoever. Now, nearly two hundred years later there are over ten ways of taxing property in Australia, with property becoming a good source of revenue for all sectors of government. The revised NSW (state) budget papers for the 2005-2006 financial years showed that property continues to be the largest sector for tax revenue for the state government. Total property taxation accounted for 33.9% or $5,362 million of total State Government revenue ($15.8 billion). This included Stamp Duty ($3,100 million), Land Tax ($1,737 million), Mortgage Duty ($320 million), Leases ($68 million), Parking Space levy ($44 million) and the abolished Vendor Transfer Duty ($93million). In addition to state taxes, property in Australia is also subject to taxation, levies and fees in several ways at the local and federal government levels. This paper will trace the growth of taxation, levies and charges on property and show how the established and new taxes impact on property investment in Australia.
Post discussion ...
||Session B8: Property Taxation
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