I own one house and one factory.
The house has land value twice that of the factory. The Local Government charge for the house is 2.02%. For the factory which is zoned A Industrial; the rate is 9.15%. The house is land tax exempt. The factory is subject to land tax, Fire Brigade levy and Stamp duty. The house is not.
The total of State and local Government charges on the factory are six times those on the house. On a pro-rata basis the total is therefore twelve times.
If a property yields a capital gain on resale,there is no tax on the house, but a substantial tax on the factory.
Traditionally Australians have sought to own their own home and this has generally been thought to be a GOOD IDEA. Family home ownership was further encouraged by low interest finance. For Many years this yielded no great profit although it did encourage saving and a store of wealth.
Inflation changed this a little. (Gough Whitlam should be my hero. He reduced my then $8500 mortgage by 45% in 3 years.)
Town planning changed the situation a lot. Town planning has meant that the cost of land for housing has risen rapidly and therefore enriched those with houses. Increasingly expenditure on housing is not expenditure on building or even renovation. It is a payment for transfer of a privileged location. It is also extremely generous to planners, bureaucrats, consultants and similar parasites.
Increasingly savings are devoted to reshuffling the stock of dwellings, not productive investment.
Finally when we reach the ultimate parasitic stage, known as retirement, the family home does not count as an asset for means test for a pension. It may even make sense to buy a bigger house for retirement.