The level of taxes on property in Australia is still outrageous and is on the verge of crippling the market according to www.CPREA.com.au Chairman, Geoff Baldwin.
“The property sector continues to be used ruthlessly as a cash cow for governments throughout Australia and this is now one of the biggest barriers to both buying established and building”, he said.
“The ABS publication, Taxation Revenue Australia shows that during the 2012/2013 financial year, Governments throughout the nation collected more than $33 billion in property taxes.
“While collections of most other taxes have remained steady during the ten year period 2003 - 2013, revenues from property taxes have jumped by over $12 billion (33%).
“Around 30% of the cost of a new home is made up of local, state and federal taxes.
“People often claim that agents fees are high but compared to government taxes they pale into insignificance, and while agents provide a service, the return for paying taxes is just more taxes.
“The property industry will soon be taxed to death if the levels of taxation being imposed on the industry continue at the current high rates.
“This was is no exaggeration, because currently the number of first home buyers in the Australian housing market has fallen dramatically mainly because of rising taxes on property.
“First home buyers are the lifeblood of the housing sector and they now account for less than 14% of all home buyers.
“High property taxes are now beginning to have an impact on second and third home sectors. More homeowners are simply deciding not to upgrade to better homes because of the high level of property taxes.
“State and Federal Governments throughout Australia have been able to get away with these tax rises because property owners and the property industry have been complacent.
“I encourage other companies in the property industry to mobilize against these massive tax hikes on property owners.
“No business in the property sector is immune from property taxes. If people are prohibited from buying or building new properties because of high taxes then there will be a massive negative flow on to our community is certain”, he said.
Media Contact – Geoff Baldwin