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“The CPI result of 1 per cent for the quarter is a concern. Factors such as housing undersupply are continuing to keep CPI above the RBA’s target and risk a higher interest rate for longer than previously anticipated.
“Perversely, these structurally higher rates will continue to supress home building activity and make it increasingly challenging for the Australian Government to build 1.2 million homes over the next five years.
“This target is ambitious, but essential to avoid ongoing rapid increases in rents.
“With higher interest rates likely to linger, it is increasingly important that government look at reducing the tax impost on homes, to improve supply of housing.
“Government taxes and charges account for as much as 50 per cent of the cost of a new house and land package.
“Governments are the biggest impediment to home building in Australia. They cannot continue to blame the consequence of their decisions on foreigners or investors who build homes and make them available for rent or sale.
“State governments increased the taxes on foreign investors a decade ago and we have seen the volume of apartments fall by around 50 per cent.
“The consequence of increasing taxes on homes is that we will get fewer homes built.
“A tax on carbon will lead to less carbon. A tax on homes will also lead to fewer homes.
“Proposals raised yesterday by Senators Lambie and Pocock to increasing taxes on established homes will not lead to increased investment in new homes.
“It is not that investment will flow from established homes to new homes, but to other investment classes, resulting in fewer new homes built.
“If politicians want to increase the supply of housing, then they should look at proposals to reduce taxes on housing.
“We cannot solve the affordability challenge with more tax on housing,” concluded Mr Reardon.
“An investment in new home building from the Future Fund would support increasing housing supply and could be used to overcome structural barriers to increasing the supply of new apartments which are vital to addressing Australia’s housing shortages,” stated Jocelyn Martin, HIA Managing Director.
HIA is proud to support the first Bricklaying Job Ready program in Geraldton that commenced on 4 November this year. The program has come as the result of hard work and collaboration from Brick & Block careers, Central Regional TAFE and the Western Australian Government.
The Housing Industry Association (HIA) in the ACT & Southern NSW has announced the year’s winning homes, kitchens and bathrooms on Saturday 16 November, celebrating exceptional builds across the region.