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{{propApi.successMessage}} {{region}} Change locationAll trick and no treat: taxes and charges haunt Tasmanian home buyers
All trick and no treat: taxes and charges haunt Tasmanian home buyers
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The Taxation of the Housing Sector report, commissioned by the Housing Industry Association (HIA), found government-imposed taxes and charges can make up as much as 37 per cent of the final cost of a typical new home in Tasmania.
HIA Tasmania Executive Director Benjamin Price said, these costs are a key factor in worsening affordability and underline why the proposed tripling of the First Home Owner Grant (FHOG) currently before Parliament is vital.
“This report makes it clear that taxes and charges remain one of the biggest barriers to home ownership,” Mr Price said.
“When governments take a cut at every step — from planning and approvals to titles and stamp duty — it’s no surprise that young Tasmanians struggle to build their first home.
“Tripling the First Home Owner Grant will give Tasmanians a fighting chance against those increasing costs. It’s a practical, targeted way to help more young Tasmanians get into the market and keep the construction industry moving.
“Redirecting support toward established homes through increased lending only fuels competition and price growth without adding a single new dwelling — supply is the only sustainable solution to Tasmania’s housing crisis.
“While Tasmania remains comparatively affordable against mainland states, that position is at risk as labour and material costs rise.
“The best way to keep Tasmania’s edge is to ease the tax burden, unlock land faster, and back measures like the increase to the FHOG that delivers real results,” Mr Price said.
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