Property propping up the economy
2015-05-29THE powerhouse property industry has become a tax cash cow for all levels of government, handing over more than $72 billion in taxes every year.
Property Council of Australia chief executive Ken Morrison said it was now time for government to ease the tax burden on the industry by abolishing some of the most “distorting taxes’’ such as stamp duty.
He also called for planning processes to be better streamlined to make housing more affordable for everyone.
New South Wales contributed the highest amount of tax with $23 billion paid by the industry in 2013-2014.
It was followed by Victoria, $16 billion, Queensland, $13 billion, Western Australia, $10 billion, South Australia, $4.849 billion, Tasmania $1.148 billion and the Northern Territory $814 million.
The property industry was now also the second biggest employer in Australia, behind only the health care and social assistance sector.
The report by the AEC group for the Property Council of Australia said the property industry directly created 1.1 million jobs — more than mining and manufacturing combined.
Mr Morrison said one in four Australias drew a wage from property, either directly or indirectly.
“Our economy needs the property industry to do well, particularly as we transition from the
mining investment boom,’’ he said.
“If we can unlock the potential to increase property’s contribution even further, that will
mean more jobs and more prosperity for Australians.’’
He has called on governments to help the industry grow even more by abolishing taxes such as stamp duty.
“We know that governments at all levels are looking for ways to secure strong and consistent
economic growth,’’ he said.
“This report confirms that they should be focused squarely on property as the industry that can deliver this for them.”
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