Why do Australians pay more tax?

The biggest tax increases in the last decade have hit households who pay less than $10,000 a year.

Photo: Alex Ellinghausen Some of the biggest increases have hit those with incomes of $10-24,000.

The average increase has been 8 per cent.

That is higher than the average annual tax rate in New South Wales and Victoria, which are both around 4 per cent, and Queensland, which is 3.6 per cent and 2.3 per cent respectively.

The Tax Office says the biggest increase was in the value of the property tax index, which adjusts the value based on the value as of the end of the year.

This has driven up property tax bills in many regions across Australia, but the average has risen.

“A large number of Australians pay a substantial portion of their income in property taxes, and a large number pay a significant portion of the cost of the tax system,” a spokesperson for the Tax Office said.

“Property taxes are paid by the people who use and occupy the land, and in some regions are even borne by the taxpayers themselves.”

The Tax Office takes its duty to provide Australians with accurate and up-to-date information seriously and, in this case, we recognise the importance of ensuring Australians have accurate and timely information.

“We’re continuing to review and update our tax reporting system to ensure Australians can use the information to better understand their tax situation and make informed tax choices.”

Mr Macfarlane said the changes were meant to “dramatically reduce” the amount of money Australians paid in property tax and ensure that the tax rate was reflected in their income.

“It is our intention to continue to use the latest data on property tax to ensure that everyone pays the fair share of the taxes they pay, and we will continue to work with other jurisdictions and local governments to increase transparency,” he said.

Tax Office spokesperson: ‘Dramatically reduced’ The Tax Agency said the average increase in the index had been 7 per cent since 2014.

The tax increase of 8 per of a cent was driven by increases in land value and income tax rates.

It is estimated that about $3.8 billion was paid in taxes in the 12 months to March.

“While it is difficult to assess the impact of this increase, it is clear that a substantial proportion of Australians do not pay enough property tax,” the spokesperson said.

The spokesperson said it was not possible to compare the average changes in tax rates across jurisdictions, because data was not collected.

“This is because tax collection is subject to change, and the Taxation Office has made a number of adjustments to ensure we are collecting more data from people,” the Tax Agency spokesperson said in a statement.