Changing Housing Taxation Composition: A Review of Policy in the Australian Capital Territory

Figures & data

Table 1. Impact of tax reform on the number of residential properties purchased, ACT, 2012–2018.

	2012	2013	2014	2015	2016	2017	2018	Total
New tax policy
Meet income and deposit constraints	11,494	12,569	13,317	14,509	15,822	12,423	9634	89,768
Old tax policy
Meet income and deposit constraints	11,163	12,413	13,162	14,220	15,315	11,853	9379	87,505
Difference (impact of new policy)	331	156	155	289	507	570	255	2263

Source: Author calculations from microsimulation model.

Table 2. Impact of tax reform on the number of residential properties purchased by sub-group, ACT, 2012–2018.

	New tax policy – Number of purchases	Old tax policy – Number of purchases	Difference	Difference %
First home buyers	34,601	32,843	1758	5.4
Low-income homeowner	9491	9423	68	0.7
Low-income renter	4629	4500	129	2.9
Middle-income homeowner	11,726	11,638	88	0.8
Middle-income renter	11,169	10,830	339	3.1
Pensioner homeowner	5952	5887	65	1.1
Pensioner renter	2397	2355	42	1.8
Female-headed homeowner	20,246	20,060	186	0.9
Female-headed renter	12,309	11,708	601	5.1

Source: Author calculations from microsimulation model.

Table 3. Impact of tax reform on the number of residential properties purchased by income and wealth quintile, ACT, 2012–2018.

	New tax policy – Number of purchases	Old tax policy – Number of purchases	Difference	Difference %
Q1 of income	4376	4312	64	1.5
Q2 of income	9744	9611	133	1.4
Q3 of income	22,895	22,468	427	1.9
Q4 of income	25,668	24,766	902	3.6
Q5 of income	27,085	26,348	737	2.8
Q1 of wealth	92	92	0	0.0
Q2 of wealth	20,849	19,486	1,363	7.0
Q3 of wealth	21,697	21,318	379	1.8
Q4 of wealth	22,840	22,450	390	1.7
Q5 of wealth	24,290	24,159	131	0.5

Source: Author calculations from microsimulation model.

Table 4. Impact of tax reform on the number of residential properties purchased with price effect, ACT, 2012–2018.

	0.8% price effect
	2012	2013	2014	2015	2016	2017	2018	Total
New tax policy
Meet income and deposit constraints	11,494	12,569	13,317	14,509	15,822	12,423	9634	89,768
Old tax policy
Meet income and deposit constraints	11,364	12,507	13,290	14,322	15,588	12,180	9503	88,754
Difference (impact of new policy)	130	62	27	187	234	243	131	1014
	2.1% price effect
	2012	2013	2014	2015	2016	2017	2018	Total
New tax policy
Meet income and deposit constraints	11,494	12,569	13,317	14,509	15,822	12,423	9634	89,768
Old tax policy
Meet income and deposit constraints	11,505	12,803	13,621	14,817	15,840	12,244	9647	90,477
Difference (impact of new policy)	−11	−234	−304	−308	−18	179	−13	−709

Source: Author calculations from microsimulation model.

Table 5. Impact of tax reform on the number of residential properties purchased by sub-groups with price effect, ACT, 2012–2018.

	New tax policy – Number of purchases	Old tax policy – Number of purchases	Difference	Difference %
	0.8% price change
First home buyers	34,601	33,794	807	0.1
Low-income homeowner	9491	9498	−7	0.0
Low-income renter	4629	4554	75	0.0
Middle-income homeowner	11,726	11,687	39	0.2
Middle-income renter	11,169	11,066	103	0.1
Pensioner homeowner	5952	5958	−6	0.0
Pensioner renter	2397	2397	0	0.0
Female-headed homeowner	20,246	20,193	53	0.1
Female-headed renter	12,309	12,058	251	0.1
	2.1% price change
First home buyers	34,601	35,010	−409	−0.1
Low-income homeowner	9491	9658	−167	−0.4
Low-income renter	4629	4944	−315	−0.1
Middle-income homeowner	11,726	11,859	−133	−0.5
Middle-income renter	11,169	11,472	−303	−0.2
Pensioner homeowner	5952	6059	−107	−0.3
Pensioner renter	2397	2397	0	0.0
Female-headed homeowner	20,246	20,426	−180	−0.4
Female-headed renter	12,309	12,746	−437	−0.2

Source: Author calculations from microsimulation model.

Table 6. Impact of tax reform on the number of residential properties purchased by income quintile, ACT, 2012–2018.

	New tax policy – Number of purchases	Old tax policy – Number of purchases	Difference	Difference %
	0.8% price effect
Q1 of income	4376	4387	−11	−0.3
Q2 of income	9744	9665	79	0.8
Q3 of income	22,895	22,753	142	0.6
Q4 of income	25,668	25,268	400	1.6
Q5 of income	27,085	26,681	404	1.5
Q1 of wealth	92	92	0	0.0
Q2 of wealth	20,849	20,083	766	3.8
Q3 of wealth	21,697	21,488	209	1.0
Q4 of wealth	22,840	22,680	160	0.7
Q5 of wealth	24,290	24,411	−121	−0.5
	2.1% price effect
Q1 of income	4376	4442	−66	−1.5
Q2 of income	9744	10,160	−416	−4.1
Q3 of income	22,895	23,331	−436	−1.9
Q4 of income	25,668	25,410	258	1.0
Q5 of income	27,085	27,134	−49	−0.2
Q1 of wealth	92	185	−93	−50.3
Q2 of wealth	20,849	21,058	−209	−1.0
Q3 of wealth	21,697	21,650	47	0.2
Q4 of wealth	22,840	22,788	52	0.2
Q5 of wealth	24,290	24,796	−506	−2.0

Source: Author calculations from microsimulation model.