Property tax rates in NSW are higher than in most Australian states and territories, but it’s still more expensive than most jurisdictions in the country.
In a report published on Tuesday, Property Tax Association of New South Wales said property tax was $1,000 higher in the region than in the rest of Australia.
The state has a property tax rate of 28 per cent, more than the other states and territory with a combined rate of 20 per cent.
Property tax rates are higher in Sydney and Melbourne, but lower in Melbourne’s west and north.
“Property tax in NSW is higher in some parts of the state than other parts of Australia,” Mr Collins said.
New South Wales’s tax rate is $1.25 for every $100 of taxable income.
State Treasurer Tom Koutsantonis said the report was “a wake up call for all NSW residents and property owners”.
“While NSW property tax rates have been frozen for three years, we have taken the necessary steps to improve the efficiency and fairness of property tax by reducing the amount of property taxes that are collected in NSW,” he said.
“New South, the Capital region, is a property market where many households have been left to pay higher property taxes.”
“While property taxes have been reduced, property owners in NSW will continue to pay a higher tax rate than in other states because of the lack of revenue from property tax revenue, particularly in NSW’s West.”
He said NSW’s property tax cuts had been in place since 2013.
However, in the three years to June this year, NSW’s tax rates had fallen from 31 per cent to 21 per cent while WA had remained flat.
Mr Collins said while the state had a property property tax of 28.6 per cent in 2017, the federal rate of 24.3 per cent was higher than that in NSW.
He would not comment on the impact of the property tax changes.