Canberra property rates, taxes outstrip other states as stamp duty is phased out

In the last week the ABS released new data on the financial and capital contributions collected through rates, property taxes and stamp duty. The growth in the amounts collected (2015/16) quite simply, is outstripping every other state and territory in Australia.

Overall figures include growth of 17.5 per cent in property taxes compared to 11.1 per cent in Melbourne. Our stamp duty in the same year grew 32.4 per cent, compared to 13.3 per cent in Sydney.

The property sector supports the ambitious tax reform agenda of the ACT government. We acknowledge that we are only five years into that program. We are the only jurisdiction undertaking such reform in the country. But the risk is while we wait for the years to tick over and gradually see stamp duty phased out – we are stuck between a rock and a hard place – where rates are increasing, property taxes and charges are also up, and the stamp duty collected overall keeps on growing.

We can point to increased activity – that comes from a growing population, new housing and land coming on the market, teamed with a buoyant forward work schedule and these are important points, which do highlight the strength in the property sector, and its growing contribution to the ACT economy.

But increasing costs for homebuyers make it harder for new developments to remain attractive for investors, ahead of other cities. Reform must deliver equitable and affordable outcomes and make it achievable to meet the policy objectives our city needs – such as urban renewal, housing affordability and housing choice. In the upcoming ACT budget, let’s hope these ambitions are kept at the forefront of the government’s mind. After all the aim is to be known as an exciting and changing city – not just the city of charges.

Adina Cirson is the ACT executive director of the Property Council of Australia.