Australia Gains One Person Every Minute

By Paul Bennion, Managing Director of DEPPRO

Historically, population growth has been a key driver in the property market and one which investors follow closely to determine where is the most opportune place and time to invest in property.

Australia's population continues to rise strongly and by the end of February 2019, ABS figures show that the population of Australia has hit over 25,270,000.

Since Australia's population breached the historic 25 million milestone on 7 August 2018, the overall population has increased by more than 270,000 persons in just in seven months.

Overall, the ABS demographic figures reveal:

  • One birth every 1 minute and 40 seconds
  • One death every 3 minutes and 16 seconds,
  • One person arriving to live in Australia every 57 second,
  • One Australian resident leaving Australia to live overseas every 1 minute
  • and 49 seconds resulting in an overall total population increase of one person every 1 minute and 15 seconds.

Migration continues to a major contributor of Australia's population growth. It currently accounts for 60.6% of total population growth compared to a natural increase in population of 39.4%.

Victoria is currently recording the highest population growth in Australia followed by New South Wales and Queensland. These three States currently account for nearly 90% of Australia's annual population growth.

Population at end Jun qtr 2018

Change over previous year

Change over previous year

PRELIMINARY DATA

'000

'000

%


New South Wales

7 987.3

119.3

1.5

Victoria

6 459.8

138.2

2.2

Queensland

5 012.2

84.5

1.7

South Australia

1 736.4

12.5

0.7

Western Australia

2 595.9

21.7

0.8

Tasmania

528.1

5.7

1.1

Northern Territory

247.3

-0.2

-0.1

Australian Capital Territory

420.9

8.9

2.2

Australia(a)

24 992.4

390.5

1.6

Source ABS

These population trends are mirrored by the tax depreciation reports DEPPRO undertook for property investors last year with Victoria, New South Wales and Queensland showing large increases in investor activity.

In particular, DEPPRO have found strong demand from investors who had recently migrated to these three States and in particular Victoria.

Despite the large number of new migrants buying investment properties, there are still many who do not fully understand the generous tax benefits that they can obtain in Australia.

After arriving in Australia, many new migrants to Australia decide to buy investment properties as a way to create wealth without realising that there are generous tax benefits which they can claim relating to property investment in Australia.

For example, the tax laws relating to buying an investment property in the United Kingdom and Australia are very different in areas such as financial benefits relating to negative gearing and depreciation benefits.

In relation to tax deprecation benefits, overseas migrants for example, may not appreciate that the tax benefits obtained through depreciation can be equivalent to 60% of the total purchase price of the property.

If you have recently migrated to Australia and are planning to buy an investment property, you can obtain more information on the benefits of tax depreciation by visiting deppro.com.au