Australia collected 62.1% of its tax revenue from personal income and corporate profits in 2023, according to the latest figures from the Paris-based OECD – well above the 36.4% average for advanced economies
Key points:
- Sydney and Melbourne recorded their weakest auction results in more than five years, highlighting a sharp deterioration in buyer demand. Sydney posted its lowest preliminary clearance rate in over six years, while Melbourne had its weakest week in almost five years.
- Buyer confidence has fallen significantly, with higher borrowing costs, policy uncertainty and weaker investor demand making buyers more cautious. Many properties are being passed in or withdrawn rather than sold.
- Sellers are facing a tougher market. Vendors are increasingly having to lower price expectations or postpone selling as buyers become more selective.
- The slowdown is most pronounced in Sydney and Melbourne, while other capitals have generally held up better, although auction activity has softened nationally.
- Auction results are often an early indicator for house prices. Persistent clearance rates below about 50–60% can signal further price weakness if the trend continues.
Biggest regrets:
- Feeling rushed by agents – Many felt pressured into making quick decisions before they were ready. Buyers found it difficult to distinguish between advice that was genuinely helpful and advice aimed at closing a sale.
- Pricing confusion – Uncertainty around what properties were actually worth led to fears of overpaying or missing out.
- Being underprepared – Many wished they’d understood the buying process, contracts and negotiation tactics better before attending inspections.
- Unexpected ownership costs – Ongoing expenses like council rates, insurance, maintenance and repairs came as a surprise for many buyers.
- Skipping thorough inspections – Some discovered issues with the property only after moving in and wished they’d been more diligent before purchasing.
- Buying emotionally – Several buyers admitted they became attached to a property and made decisions based on emotion rather than logic.
Graphic: ABC News
A friend of mine was made redundant over a year ago and has struggled to find work in his industry, which is IT-related. He’s now at the point where he’ll need to move back in with his parents unless he finds something in the next 2 months.
The thing is, he refuses to take a temporary or lower-paying job while he looks for something permanent.
I suggested jobs like Uber, customer service and retail etc. He looked at me and laughed.
Would you take a lower-paying job just to keep money coming in, or would you hold out for a role in your field?