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{{propApi.successMessage}} {{region}} Change locationCuts to taxes on housing will be increasingly necessary to improve housing supply as interest rates remain high
Cuts to taxes on housing will be increasingly necessary to improve housing supply as interest rates remain high
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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.
For more information please contact:
Annual Regional Meeting of Members of Victoria Region
Notice is hereby given that the Annual Regional Meeting of Members of the Victoria Region of Housing Industry Association Limited will be held on Monday 16 February 2026 at HIA Cremorne Office – Level 1, 8 Gwynne Street, Cremorne, Victoria, 3121 commencing at 5.00pm.
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