HIA has 50 action ideas to invigorate the housing industry

The Housing Industry Association has ramped up its pre-budget campaign saying high taxes, fees and levies make homes unaffordable as the building industry contracts.

It posted a half page ad (pictured below) in The Australian saying Australia is facing a housing shortage as the less homes are built due to costs being too high.

The website for its Australia Needs Building campaign says “taxes are the single biggest issue Australians faced when it comes to house affordability.”

The campaign says 150,000 families will miss out on a new home by 2020. It says the industry will build 25,000 fewer homes this year than it did 10 years ago.

Director Shane Goodwin said last week the home building industry needs more support from governments.

“Governments can’t ignore housing any longer. They need to act more constructively, cooperatively and determinedly to meet the housing needs of Australians and their families,” Goodwin said.

“With 2013 being an election year, it is essential that all parties embrace policies that will improve housing affordability and cut through the red and green tape that is strangling new housing development.”

He has yet to suggest what the HIA wants but its campaign details the taxes and levies faced by home-builders in each state.

“Taxes, levies, fees and charges account for 40% of the cost of building a new home. In some housing markets it’s even higher,” its campaign says.

“Tax on new homes in Sydney is 44% of the purchase price, 38% in Melbourne, 36% in Brisbane and 41% in Perth, in Adelaide its 39%.

“This means households will pay an extra $670 per month for the life of a loan, which is the equivalent raising the interest rate on the loan by 5.5%.”

The HIA will further its campaign on May 9, releasing 50 action strategies for housing. 

Shane Goodwin, the managing director is the key note speaker at Thursday's launch.

"We will be releasing 50 policies that run across the economy, taxation, industrial relations and small business red tape," the HIA advised.

The federal budget is announced on Tuesday May 14.