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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.
“The number of housing loans issued to first-time home buyers has been steadily increasing in recent months, pointing to strong demand for homes among aspiring homeowners,” stated HIA Economist, Maurice Tapang.
“House approvals are taking longer than ever to get through local councils and exacerbating Australia’s worsening housing and rental shortages, and this is even more pronounced in regional Australia,” said Mike Hermon, HIA Executive Director, Planning & Environment.
The 10th annual Queensland HIA Building Women Awards recognised stellar talent, and shone a spotlight on the huge contribution women are making to building more homes.
HIA has today released a comprehensive Planning ‘Scorecard’ that assesses each state and territory’s current planning system’s progress against the implementation of National Cabinet’s National Planning Reform Blueprint.