The first 15 years of mortgage repayments by homeowners effectively only pays off the equivalent taxes and government costs associated with developing the property.

HIA senior economist, Thomas Devitt, says government taxes, regulations and charges are costing Australians more than ever.
In Sydney, half the cost of a standard house package is made up of taxes of about $576,000. “This means over a 30-year mortgage, homebuyers are spending the first 15 years just paying off taxes and government costs,” Devitt says. “With the interest charged on top of that, over 30 years the value of these taxes and government charges amounts to more than the value of the home itself.”

The fees and taxes in Melbourne are on average, $373,000 and Brisbane, is $348,000 while both Perth and Adelaide are just under $240,000. Devitt says in every capital city the taxes have increased since 2019 and in Brisbane and Adelaide, the costs have doubled. “Not even the best, legitimate investment strategies could achieve the same level of return,” he says.