The Australian Bureau of Statistics (ABS) released Taxation Revenue data for 2014-15.
The data showed that over the financial year tax collection by the Commonwealth Government was $357.406 billion with a further $89.278 billion collected by state and local governments.
Commonwealth Government tax revenue rose by 1.2% over the year which was lower than CPI (1.5%) while state and local government revenue increased by a substantially greater 7.0%.
As you will see in the article, property related taxes are particularly important for state and local governments, accounting for more than 50% of all taxation revenue.
For the Commonwealth Government, income tax is the most important source of revenue, accounting for far in excess of half of its taxation revenue.
The ABS released consumer price index (CPI) data for the March 2016 quarter earlier this week.
The data showed that inflation was recorded at -0.2% over the March 2016 quarter which was the largest quarterly fall in inflation since December 2008.
Over the past year, inflation was recorded at 1.3%, its lowest annual reading in 12 months and well below the Reserve Bank’s (RBA) target range of 2% to 3% per annum.
The inflation reading was dragged lower by large drops in the price of automotive fuel (-10%) and fruit prices (- 11.1%).
The RBA likes to look at measures of underlying inflation, the trimmed mean and weighted median, which over the quarter were recorded at 0.2% and 0.1% respectively.
Over the past 12 months, the trimmed mean increased by 1.7% and the weighted median rose 1.4%.
The annual change in the trimmed mean is at its lowest level since March 1999 and the annual change in the weighted median is at its lowest level on record (since March 1983).
The very low inflation reading means that the RBA now has more than enough scope to cut official interest rates if required.
Looking at the housing component of CPI, it rose by just 1.7% over the 12 months to March 2016, its lowest annual increase since December 1998.
Housing is the largest component of overall CPI however, it is important to note that it only takes into consideration owner occupier purchases of new dwellings so doesn’t include established purchases and investor purchasing in the market.
Over the week ending April 24 there were 1,565 capital city auctions with CoreLogic collecting results for 1,368 auctions, accounting for 87% of all auctions held.
The final clearance rate was recorded at 69.7% which was the highest clearance rate in four weeks.
The number of auctions fell from 1,699 over the previous week.
Last week, across Melbourne, typically the largest capital city auction market, 602 auctions were held with a clearance rate of 71.5%.
Melbourne’s clearance rate was unchanged over the week and clearance rates have now been lower than 75% for 11 weeks.
Sydney’s auction clearance rate was recorded at 77.4% across 643 auctions compared to a clearance rate of 69.8% across 477 auctions the previous week.
It was the city’s highest clearance rate in 4 weeks.
Across the remaining regions, clearance rates rose over the week in Perth, Tasmania and Canberra while they fell elsewhere.
Note that sales listings are based on a rolling 28 day count of unique properties that have been advertised for sale.
Relative to the same period last year, the number of new listings over the past twenty eight days is 3.3% higher on a national basis and the total volume of stock on the market is -1.2% lower.
Across the combined capital cities, new listings are 6.9% higher relative to last year, while total listings are 6.1% higher.
On a city by city basis, only Perth (-4.7%) and Darwin (-3.7%) are seeing a lower number of new listings than a year ago suggesting vendors elsewhere continue to have a level of confidence in their markets. In terms of the total stock available for sale, Hobart (-23.9%) and Canberra (-12.0%) are the only capital cities to have fewer total properties for sale
than a year ago.
Nationally, both new and total listings are at their highest level in 4 weeks.
Across the capital cities, new and total listings are also at their highest levels in 4 weeks.