CoreLogic has produced an interesting analysis of the rivers of gold flowing to the states from Australia’s property bubble, whereby the tax take has doubled in just 11 years:
Over the 2016-17 financial year, state and local governments collected $52.5 billion in taxes from property with the figure climbing by 5.9% over the year. The taxation take from property is now more than double what it was in 2005-06. Property taxes accounted for an historic high 52.8% of all tax revenue for state and local governments, up from 51.9% over the previous year.
Property taxes are broken down into two broad types, taxes on immovable property and taxes on financial and capital transactions. Taxes on immovable property include: land tax, municipal rates and other smaller taxes. Taxes on financial and capital transactions include predominately stamp duties as well as a few other smaller taxes. Taxes on immovable property were recorded at $29.185 billion over the year with the remaining $23.338 billion being taxes on financial and capital transactions. Over the year, taxes on immovable property increased by 7.9% while taxes on financial and capital transactions increased by 3.6%…
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
