{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location {{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change locationGovernments cannot tax their way to increasing housing supply
Governments cannot tax their way to increasing housing supply
Member and guest login
Enter your email and password to access secured content, members only resources and discount prices.
Did you become a member online? If not, you will need to activate your account to login.
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Forgotten password
Need some help?
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
If the email address you have entered is registered, you will receive an email with further instructions.
Become part of the HIA community
Enables quick and easy registration for future events or learning and grants access to expert advice and valuable resources.
Create a guest account
Enter your details below and create a login
“In order to address the acute shortage of housing stock, governments need to attract more foreign investment, not increase taxes on them,” stated HIA’s Chief Economist, Tim Reardon.
“There are two very common misunderstandings about the shortages of housing in Australia. One is that there is a large volume of vacant homes, the second is that foreign investors are the cause of the housing shortage,” added Mr Reardon.
“Each census the Australian Bureau of Statistics reports that around 10 per cent of homes were vacant on census night.
“Around half of these ‘vacant homes’ are people away from their primary residence on census night as they are on holidays, some are for sale, some being renovated or are in regional areas away from employment opportunities.
“The ABS has reported that around 10 per cent of homes are vacant in each census since 1986, this figure is consistent with other developed economies and is not the cause of Australia’s housing shortage.
“It is a fallacy to think that 10 per cent of homes are unoccupied and unhelpful for policy makers to suggest that homes are being withheld from the market when a core problem is that governments continue to increase tax imposts on hew homes.
“Secondly, since 2015 a range of punitive taxes have been imposed on foreign investors by State and Federal Governments. The consequence of this is that these investors have withdrawn from the Australian market, and this is a key reason why the volume of apartments commencing construction is now almost half of what it was in 2016.
“If governments tax something, there will be less of that item.
“Foreign investors build new homes, they don’t live in them, then cannot take them out of the country and are central to addressing the shortage of housing in Australia. They are the key to addressing the inequity that falls hardest on Australian renters.
“One in ten Australian detached homes are built by a foreign owned company. These companies are finding it increasingly difficult to invest in Australia and build new detached homes, due to the punitive tax’s governments impose.
“In order to address the acute shortage of housing stock, governments need to attract more foreign investment by reducing the tax impost, they need to stop increasing the cost of building new homes by imposing additional regulatory and tax imposts and they need to assist local councils to invest in infrastructure.
“Changes announced in this year’s Federal Budget will assist domestic institutional investors to build new homes in Australia, but they have not yet filled the space left vacant by the exit of foreign investors from the Australian market,” concluded Mr Reardon.
A background paper on foreign investor taxes can be found at Stamp Duty Watch
Detached and Multi starts: 1 year rolling average - AUS
Estimated taxes on foreign housing investors
For more information please contact:
“Let’s Build Australia” and get serious about skill shortages
“The focus on Fee Free TAFE is distracting from the real issue facing the supply of housing in Australia. Successive governments have been aware of the persistent and structural skill shortages across key construction trades for decades and the current policy approaches are doing very little to shift the dial,” said HIA Managing Director Jocelyn Martin.
Keeping the dream alive - Greenfield development must be part of a diverse housing mix (NSW)
Reports featured in the media today are a good reminder that home ownership still matters to Australians, and we need to build more housing, of all types to keep the dream of home ownership alive,” said Brad Armitage, HIA Executive Director NSW.
New Year updates for WA
On behalf of all of us at HIA we would like to wish you a very happy 2025! As everyone heads back to work for the new year, we are sharing some exclusive member updates to get you ready for what lies ahead and perhaps what you might have missed while you were away.
Homes for NSW Plan
HIA has read with interest the Homes for NSW Discussion Paper, and particularly the intention to deliver more and better homes and develop a system that is flexible enough to respond to emerging needs and new approaches.