The Property Council promotes a more efficient tax system to makes housing more affordable, unlock productivity, create jobs and provide a more reliable revenue base for government.
Property is a highly taxed asset class subject to some of the country’s most inefficient taxes such as stamp duty. Excess taxation makes homes less affordable and adds to the cost of doing business.
Stamp duties, land taxes, GST and large development levies can make up as much as 26 per cent of the total cost of a finished house, and up to 21 per cent of the total cost of a finished apartment.
The property industry contributed approximately $72.1 billion in combined Australian and State Government tax revenues and local government rates, fees and charges revenue in 2013-14. This equates to 16.0% of total Australian and State/ Territory taxes and local government rates, fees and charges revenues in 2013-14.
Australian and State Government property related taxes of $48.9 billion represents a contribution of approximately 11.4% of total combined Australian and State Government tax revenues in 2013-14.
A fairer and more efficient tax system can be achieved by:
- Reducing stamp duty – which is recognised as one of the economy’s most inefficient taxes
- Reshaping land tax to make it fairer by having a single flat rate land tax structure for all existing land tax payers
- Harmonising state tax calculation methodologies to boost investment across states and territories
- Shifting away from ad-hoc and inequitable infrastructure charges to more sustainable models for infrastructure funding
- Maintaining negative gearing and the 50 per cent CGT discount for all forms of investment
- Avoiding value capture models that simply introduce new property taxes.