The overall share of state taxes paid by the property industry will go down for the first time in almost a decade, despite land tax levies increasing by 28.1%.
The Property Council of Australia’s Steve Greenwood said the property industry’s proportion of state tax would fall from 45% to 43% in the 2008/09 year.
“Property taxation is a matter for the whole community, and – along with the slow release of new land for development and inflated infrastructure charges – has had a catastrophic impact on housing affordability,” Greenwood said.
While he welcomed the abolition of mortgage duty and measures to assist first homeowners, Greenwood said property owners remained concerned about the 28.1% growth in land tax projected in this year’s Budget.
“The government deserves credit for a range of measures in today’s Budget, but the fact is an additional $175m in land tax from the property industry will end up in the state’s coffers in the 2008/09 year,” he said.
The maximum rate of transfer duty has also been raised from 4.5% to 5.25%.
Greenwood said he welcomed sharing the taxation burden with the mining industry.