Rising property taxes in Australia are leading landlords to sell off rental properties amidst an unprecedented housing crisis, according to the Property Club. The latest Australian Bureau of Statistics (ABS) government finance figures reveal property taxes totalled $36.4 billion in the last financial year, a 68 per cent increase over the past decade.
This significant increase translates to Australian property owners paying an estimated $100 million every day in taxes, according to Kevin Young, President of Property Club, which describes itself as Australia's most extensive independent property investment group.
"Moreover, this figure doesn't account for the billions collected by the Federal Government from the property sector through GST and capital gains taxes," Mr Young added. He raised concerns about the financial pressures forcing property investors to sell, further exacerbating the rental market crisis.
Particular criticism was directed at the 2017 decision by the Federal Government to cut depreciation benefits from second-hand rental properties. Mr Young argued that such measures were unfairly targeting property owners and suggested the burden should be shared more equitably with other investors, including those in the stock market.
Property Club has urged the government to introduce a new share trading tax to counterbalance the dramatic rise in property taxes. According to Mr Young, the introduction of the GST was initially promised to lead to the removal of stamp duty on property, but the commitment was never fulfilled.
"In contrast, stamp duty was removed from share trading, reflecting the financial sector's influence," he explained. Mr Young accused the government of neglecting property owners and allowing preferential treatment for the finance industry.
Property Club proposes a special annual tax on share trading to finally eradicate stamp duty on property and halt the increase in land taxes. Restoring tax depreciation benefits to second-hand rental properties was another recommendation.
Addressing these tax disparities is crucial for solving the housing crisis, Mr Young argued, noting, "Reducing taxes on the property sector is the first step towards a sound policy direction."
