{{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:
NT housing market continues to outperform as confidence drives growth
The Northern Territory's housing market continues to outperform many parts of the country, with strong dwelling price growth, rising building approvals and sustained investment activity demonstrating confidence in the Territory's future.
EIE – Standard and model conditions of consent
HIA commented on the Explanation of Intended Effect for Standard and model conditions of consent (the EIE). It is understood the EIE explains the proposed amendments to State Environmental Planning Policy 2021 that will give effect to consistent conditions of consent for residential development across the state.
Tasmanian home approvals lift, but still short of what’s needed
Home building approvals in Tasmania have climbed over the past year, though the numbers remain well below the level needed to meet demand.
Solid apartment approvals fail to reverse housing slowdown in ACT
The latest building approvals data shows the ACT residential building market remains subdued, with detached housing continuing to struggle and the momentum that emerged in the apartment market during 2025 now showing signs of fading.