{{ propApi.searchIcon }}
{{ propApi.closeIcon }}
Our industry
Our industry $vuetify.icons.faArrowRight
Housing industry insights
Economics Insights Data & forecasts Tailored research & analysis
Advocacy & policy
Advocacy Policy priorities Position statements Submissions
News & inspiration
Industry news Member alerts Media releases HOUSING Online
Business support
Business support $vuetify.icons.faArrowRight
Support & guidance
Ask an expert Contracts & compliance support Building & planning services Australian Standards
Member perks
Toyota vehicles The Good Guys Commercial Ampol fuel savings See all
Industry insurance
HIA Insurance Services Construction works insurance Home warranty insurance Tradies & tool insurance
For your business
Contracts Online Safety systems & solutions HIA SafeScan
Apprentices
Why host a HIA apprentice? Hire an apprentice Value for money
Resources & advice
Resources & advice $vuetify.icons.faArrowRight
Building it right
Building codes National Construction Code Australian standards See all
Building materials & products
Concrete, bricks & walls Getting products approved Use the right products for the job See all
Managing your business
Dealing with contracts Handling disputes Managing your employees See all
Managing your safety
Safety rules Working with silica See all
Building your business
Growing your business Communication for your business See all
Other subjects
Getting approval to build Sustainable homes See all
Careers & learning
Careers & learning $vuetify.icons.faArrowRight
A rewarding career
Become an apprentice Apprenticeships on offer How do I apply? Frequently asked questions
Study with us
Find a course to suit you Qualification courses Learning on demand Professional development courses
A job in the industry
Get your builder's licence Continuing Professional Development (CPD) Further your career
HIA community
HIA community $vuetify.icons.faArrowRight
Grow with us
Sign me up Become a member Member benefits Mates rates
Our podcasts
Made To Build Built Different HIA Building Australia Building the Hunter
Our initiatives
HIA Building Women Charitable Foundation GreenSmart Kitchen, bathroom & design hub
Get involved
Become an award judge Join a committee Meet our members Partner with us
Awards & events
Awards & events $vuetify.icons.faArrowRight
Awards
Awards program People & Business Awards GreenSmart Australian Housing Awards
Awards winners
Regional Award winners Australian Housing Award winners 2026 Australian Home of the Year
Industry events
Events in the next month Economic outlook HIA Made Events calendar
HIA shop
HIA shop $vuetify.icons.faArrowRight
Most popular products
National Construction Code Vol 1 & 2 Waterproofing wet areas AS 3740:2021 HIA Guide to Waterproofing HIA Guide to NCC Livable Housing Provisions
Top categories
Building codes & standards Contracts & documents Guides & manuals Safety products Signage
For your business
Contracts Online Digital Australian Standards Digital Resource Library Forecasts & data
About Contact Newsroom
$vuetify.icons.faTimes
$vuetify.icons.faMapMarker Set my location Use the field below to update your location
Address
Change location
{{propApi.title}}
{{propApi.text}} {{region}} Change location
{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location

$vuetify.icons.faPhone1300 650 620

Housing taxation doubles in just 5 years

Media release

Housing taxation doubles in just 5 years

Media release
Today, HIA has released a report commissioned from the Centre for International Economics (CIE) on Taxation of the Housing Sector.

Taxation of the Housing Sector Report is an update to the work undertaken in 2019.

This Report shows that:

  • $576,000, or half, of the cost of a new house and land package in Sydney is government taxes, regulatory costs and charges.
  • The value of taxes and charges in Sydney has increased by 38 per cent or $160,000 since the 2019 Report.
  • The largest increase in the value of tax and regulatory imposts was in Brisbane, up by $179,000 or more than double (+106 per cent) compared to the 2019 Report.
  • It takes over a year to obtain a development approval for subdivision, and up to seven months are attributed to unnecessary delays.
  • $346,000, or 38 per cent, of the cost of a new apartment in Sydney is government taxes, regulatory costs and charges.
  • The value of the tax and regulatory cost component of a new apartment has increased by $104,000 or 68 per cent in Brisbane compared to the 2019 Report.

“Australia has an acute shortage of housing because governments continue to tax new home building and impede productivity in the sector,” stated HIA Chief Economist, Tim Reardon.

“In Sydney, governments are adding in excess of half a million dollars to the cost of a new home, that new home buyers are then required to repay for decades as part of their mortgage.

“With half of the cost of a new home being taxes and government charges, new home buyers are spending 15 years of a 30-year mortgage just paying off that tax.

“New home buyers also have to pay interest on top of that tax. Over 30 years, the value of taxes plus the interest on it amounts to more than the value of the home itself.

“With government taxes, fees and charges so high, the term ‘house and land package’ may as well be changed to ‘house and tax package’.”

“In Brisbane and Adelaide, government taxes, fees and charges on new homes have doubled in five years. Not even the best, legitimate investment strategies could achieve that same level of return.

“The primary solution to resolve Australia’s housing shortages is to remove government taxes and red tape to allow the industry to deliver the homes Australians are demanding.

“Delays on getting approvals take much longer than the time it takes to actually build a home. 

“New home building taxes appear to be the target of governments under fiscal pressure, seeking to find other sources of revenue. What they do not realise is that when they increase taxes on housing, there ends up being fewer of them.

“It is incongruous that governments set home building targets, while at the same time tax new home building even more. The more government tax new homes, the fewer homes will be built.

“Taxes on housing have not resulted in more of them being built. Higher taxes on new housing will only lead to fewer new homes and higher prices for existing homes.

“If governments were keen to solve the affordability problem, they need to look at the tax they are imposing on new housing,” concluded Mr Reardon.

Statutory taxes, regulatory costs and infrastructure charges for greenfield houses

Source: HIA, CIE

For more information please contact:

Tim Reardon

HIA Chief Economist

Joe Shanahan

Manager, Communications & Media
Latest articles
View all news $vuetify.icons.faArrowRight
01 Oct
New rules add thousands to the cost of a new home as Tasmania falls years behind on housing

From today, every new home built in Tasmania must meet the full Livable Housing Design requirements. The Housing Industry Association says this adds thousands of dollars to the cost of building a home, at a time when Tasmanians can least afford it.

01 Oct
Rules for managing the risk of falls have changed - are you up to date?

Changes to Western Australia's requirements for managing the risks of falls will commence on 1 October 2026, introducing new expectations for builders, contractors and workers undertaking tasks where there is a risk of falling.

01 Oct
Livable Housing Design: final stage now in force

As of today, 1 October 2026, all new building work in Tasmania, unless exempt, must comply with all requirements of Part H8 Livable Housing Design of NCC Volume Two.

30 Sep
ACT housing approvals slump puts 2030 target under pressure

“The ACT’s housing supply pipeline is weakening, with building approvals in the three months to August halving compared with a year earlier,” said HIA Executive Director ACT and Southern NSW, Geordan Murray.