Taxes Biggest Concern

The continual increase in taxes and levies on property construction and investment is having a big impact on industry confidence.

The latest Procore/Property Council survey of industry experts shows a doubling of the number who are concerned about how the sector is taxed.

At a state level, 32% of respondents named property taxes and charges as the top issue for state governments, 11% above the historical average and a record high.

In Victoria, where numerous additional taxes and levies have been imposed in the past two years, it is a high 63%.

Property Council Chief Executive Mike Zorbas says the way Governments tax new homes has to change.

“New home buyers are being slugged with a shocking tax burden. 30% of a new home’s purchase price goes in government taxes, only a fraction of which end up as community infrastructure,” he says.

“Add the extra taxes on institutional investment in apartments, build-to-rent, student accommodation and retirement living, and it almost looks like state governments don’t want new homes to be built.”