$50,000 whack on home buyers if GST rises: Peter Icklow
Jonathan ChancellorDecember 7, 2020
The property developer, Peter Icklow, chief executive of Monarch Investments, said real estate would be adversely affected by any GST hike.
"It's going to whack another $50,000 on every new home," he told The Australian Financial Review.
It follows debate over lifting the GST to 15%.
NSW Premier Mike Baird says he was willing to talk about the issue.
Under the current rules, new homes are subject to the GST, which adds roughly 10% to the price, but buyers of established homes pay nothing.
The Urban Development Institute of Australia says at the current GST rate of 10%, a new home sold at Australia's median dwelling price of $571,500 included a GST component of $51,955.
A white paper on tax reform will be released by the end of the year.
Jonathan Chancellor
Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.