ABSTRACT
The modern tax on immovable property (the property tax) has old ancestry, being one of earliest forms of taxation. Although its popularity in Australia has waned recently in favour of the income tax it is still the most important tax at the local level of government. This chapter provides an overview of property taxation in Australia, compares taxes on immovable property with other taxes under the criteria of 'good taxation', considers the relative merits of improved property taxes versus land taxes, and the necessary assumptions and criteria for an efficient property tax system. Taxes on immovable property in Australia consist of two types, municipal rates and land taxes.
