Housing industry insights
Advocacy & policy
News & inspiration
Support & guidance
Member perks
Industry insurance
For your business
Apprentices
Building it right
Building materials & products
Managing your business
Managing your safety
Building your business
Other subjects
A rewarding career
Study with us
A job in the industry
Grow with us
Our podcasts
Our initiatives
Get involved
Awards
Awards winners
Industry events
Most popular products
Top categories
For your business
{{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 increased housing supply
Governments cannot tax their way to increased 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
Send me exclusive tips, early access to new launches, and special offers. I can change my mind at any time.
By clicking Get started now you agree to the terms and conditions and privacy policy.
Mr Reardon was speaking in response to the introduction of the ‘Short Stay Levy Bill 2024’.
“The contention is that taxing short stay accommodation will see more homes be made available for long term rentals and raise revenue to fund public housing,” added Mr Reardon.
“No one supports landlords withholding homes from market. But the proposition that another tax on short-stay accommodation will increase housing supply or make more homes available for rent, in the long-term, lacks logic.
“The ‘first order effect’ of a tax on short-term rentals may see some rental properties become available for long-term accommodation. The second order effects will negate this benefit. Fewer short-term rentals, and growing demand, will see the rent on these properties continue to rise attracting landlords back out of the long-term rental market.
“Taxing short stay accommodation does not increase housing supply. In the long run, it will increase rental prices in short and long stay rental properties.
“This is just another tax on housing, that will reduce the supply of homes further and exacerbate the problem.
“This tax comes on top of other new taxes and costs on housing in recent years including:
- A windfall gains tax, whereby when land is re-zoned, any subsequent uplift in the value of that land more than $100,000 is taxed at a rate of up to 62.5 per cent.
- A land tax surcharge for Victorians with more than one home, up to a $975 flat surcharge plus a 0.1 per cent increased rate of land tax.
- An absentee owner surcharge of 4 per cent, up from 0.5 per cent in 2016.
- A vacant residential land tax of up to 3 per cent on the capital improved value of taxable land
- The latest changes to the National Construction Code, which add tens of thousands of dollars to the cost of construction of a new home
“Governments cannot increase the supply of housing by taxing them more, even if the revenue is allocated to new public housing stock. This is an own goal that will further reduce housing supply and place more pressure on public housing stock.
“A lack of public housing is not the cause of the housing crisis, and it is therefore not the solution. It is a symptom of higher government taxes and costs on housing.
“Victoria requires more public housing stock, and this is the right time in the cycle to build more public housing.
“But public housing is a public good and should be paid for by all Victorians, not a tax on a narrow cohort of renters or households.
“Burdening new home buyers and renters with the cost of providing public or subsidised housing is part of the cause of this housing shortage, not the solution.
“Up to 50 per cent of the cost of a house and land package is taxes, fees and charges. Housing is the most heavily taxed item in the economy other than fuel, alcohol and tobacco.
“It is these taxes and government regulations that are the cause of the housing shortage and removing them is the solution.
For more information please contact:
Government delays ATO credit card payment changes
The Federal Government has announced that the Australian Taxation Office (ATO) will continue to accept credit card payments for tax liabilities until the end of the 2026-27 financial year, delaying changes that were previously due to take effect on 1 December.
Government provides breathing space for builders and tradies on ATO credit card ban
The Housing Industry Association (HIA) welcomes the Federal Government's stepping in and agreeing to delay the Australian Taxation Office's (ATO) proposed ban on credit card payments, providing builders, tradies and suppliers with much-needed breathing space while a longer-term solution is developed.
HIA Victoria not failing housing targets as badly as others is not success
The Housing Industry Association (HIA) says the Victorian results in the HIA National Housing Accord Update released yesterday, while not as poor as some other states, highlight the urgent need for a reset in housing policy after the upcoming state election.
HIA Safety Summit headlines National Safe Work Month
HIA’s annual Safety Summit is being held today in Adelaide (8 October) and will bring together industry leaders, regulators and workplace safety experts, providing practical guidance to help residential builders and tradies create safer worksites and support compliance in an ever-changing world.