HIA urges the federal government to scrap the carbon tax

The Housing Industry Association (HIA) has urged the federal government to repeal the carbon tax when it sits next month, saying it adds to the burden on people buying a new home.

“The carbon tax is bad for housing affordability, and the housing industry will welcome the introduction of the bill to dismantle,” says HIA spokesman Graham Wolfe.

“Modelling conducted prior to the introduction of the tax projected an increase of between 0.8% and 1.7% increase in the cost of building a home, and we have not seen any evidence to the contrary.

“The housing industry implored the previous government not to introduce the tax, and we are now asking in the strongest terms that all sides of politics support its repeal.

“It is a bad tax,” says Wolfe.

Wolfe says it not only adds to the burden on people buying a new home, particularly those who are trying to get into the market for the first time, but it also puts a hand-brake on jobs in home building, manufacturing and related sectors.

“Imposing the carbon tax across the range of products and components that comprise a new home means that a tax multiplier effect occurs on the largest purchase most people will make in their lifetime.

“And the key question is, how will this help improve the environment?” says Wolfe.

Wolfe says new homes are much more energy efficient than existing homes and there lacks transparency about where the carbon tax is adding to the cost of building a home.

“Therefore, the home buyer can’t make decisions or change behaviour to avoid paying for it.

“Industry and customers’ needs certainty, particularly as contracts for new homes are being priced and written many months in advance.

“The best way to achieve this certainty is to quickly dismantle the tax,” says Wolfe.