Residential property buyers paying high amounts of tax, says RP Data
Residential property owners are paying a disproportionate amount of tax, suggests an analysis from RP Data's Cameron Kusher.
The analysis highlights the weak property market performance in the 2011-2012 financial year, while pointing out that despite this, the taxes collected increased.
Mr Kusher referenced data that showed the combined capital city home values had fallen by 3.6 per cent over the year, and the number of home sales across the country was down by 6.1 per cent.
"Given these figures, it is clear there was only one way state and local governments could increase their tax revenue, and that was by raising tax rates on property," he explained.
The two largest sources of these taxes are municipal rates (39.6 per cent) and stamp duties (34.8 per cent).
While stamp duties were recently lowered by 40 per cent in Victoria to help lower the cost of buying a property, Mr Kusher believes that the increased sales activity will push the revenue up for this form of tax.
"Since the end of the last financial year, we have seen an increase in sales activity across the national housing market. As a result, stamp duty revenue is likely to increase over the next financial year however, any increase is unlikely to be significant," Mr Kusher explained.