Property taxes are crippling housing affordability: HIA

Property taxes are crippling housing affordability: HIA
Property taxes are crippling housing affordability: HIA

Taxes, fees, levies and other government charges are "the lead in the saddlebag" for housing affordability, according to the Housing Industry Association's (HIA) chief executive – industry policy and media, Graham Wolfe.

“Housing affordability will not be addressed by political point scoring around negative gearing or capital gains tax,” he said.

“It’s a distracting and lazy debate and one where all three levels of government point a finger at each other, when it’s a fact that around 40% of the cost of a new home is taxation.”

“Increasing the supply of new housing is an obvious key to improving housing affordability.

“But retaining the enormous taxation burden on the cost of new homes is an anathema to addressing the problem.”

Wolfe is responsible for the lobbying group's policy development, media and advocacy functions and has been pushing the government to reform its taxation policies towards the industry.

“It’s the taxes and levies that are charged on every new home that overwhelmingly defeat all attempts to reduce housing costs,” he said.

“Yet housing, a basic requirement that all Australians should be able to access, is taxed more heavily than other parts of the economy.”

“State based stamp duty on the purchase of a typical new home alone adds a $91 per month burden on household mortgage repayments.”

“On average, families in NSW will pay considerably more – every month for the life of their home loan.

“Residential investment in housing has made a considerable contribution to arresting rental costs for thousands of families.

“Particularly in NSW where new supply has moderated rental increases over the past two years.”

tax Hia

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