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Home Investment NewsReal Estate Investing The government is shifting the blame for the housing crisis while making tens of billions of dollars from property taxes.

The government is shifting the blame for the housing crisis while making tens of billions of dollars from property taxes.

by xyonent
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Key Takeaways

Analysis of PIPA data shows that there are around 175,000 households on waiting lists for public and community housing across Australia, an increase of 20,000 since 2014. More than a third of people seeking emergency government assistance are turned away.

Although the amount of public housing as a percentage of total housing has declined over the past decade, state and local governments have collected $68 billion in property taxes.

The study found that 640,000 households are living in unsuitable housing due to cost pressures, and this number is likely to rise by 2041.

According to the Property Investment Professionals Association of Australia (PIPA), governments collect tens of billions of dollars in property tax every year, while blaming private investors for a shocking underinvestment in public housing.

An analysis of PIPA data shows that around 175,000 households are currently on waiting lists for public or community housing across Australia, an increase of 20,000 since 2014.

More than a third (35%) of people seeking emergency assistance from their governments have been denied help, up from 29% in 2016.

Despite this, Australia’s total social housing stock of 430,000 units has remained virtually unchanged over the past 25 years.

“What has changed is the number of people who need housing, with the country’s population having soared by 33 per cent in the last 20 years,” PIPA chair Nicola McDougall said.

Housing Crisis 2

Decreasing proportion of social housing

Data from the Australian Institute of Health and Welfare (AIHW) shows the amount of public housing as a proportion of total housing stock has “steadily declined” over the past decade and is expected to fall to 4.1% by 2022.

But according to Australian Taxation Office tax revenues for the 2022/2023 financial year, state and local governments will collect a combined total of about $68 billion in property taxes, including stamp duty and land tax but not capital gains tax, a staggering 73 per cent increase over the past decade.

That year, the government invested just 1.4% of total revenue in housing and public facilities, according to the ATO.

According to AIHW data, the share of social housing in the total number of housing units has fallen to less than 5% in the four largest states.

  • New South Wales: 4.7 per cent
  • 2.9 per cent in Victoria
  • Queensland: 3.5 per cent
  • Western Australia: 3.9 per cent

Each of these states has recorded declines over the past decade.

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