{{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 locationTaxes and regulatory costs continue to damage Victorian housing affordability
Taxes and regulatory costs continue to damage Victorian housing affordability
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
HIA Executive Director, Victoria, Keith Ryan said, “the report shows an astounding $373,000, or 43 per cent, of the cost of a new house and land package in Melbourne is comprised of government taxes, regulatory costs and charges.
“Since the last report in 2019, the value of taxes and charges on a new house and land package in Melbourne has increased by a staggering 73 per cent or $157,000.
“That rise far exceeds the growth in average earnings over the same period, which has been around 3 per cent annually. It also far exceeds the $10,000 grant first homebuyers receive.
“First home buyers needed to have saved, or borrowed that extra $157,000, to fund the construction of their new home.
“When governments increase taxes and charges on new homes in Melbourne by 73 per cent, the end homebuyer does not receive a 73 per cent better or larger home.
“HIA regularly reminds policymakers that we cannot tax our way out of the housing crisis – but it seems this advice is not being heeded by the Victorian Government.
“The Victorian Government cannot keep increasing taxes on new homes and expect more to be built. The creeping proportion of taxes on new homes only makes housing more unaffordable,” Mr Ryan said.
The report also found that it takes a year to obtain a development approval for subdivision, and one-third of this is just unnecessary delays.
“Delays are known to be costly, and the amount of delay in getting approvals done surpasses the time it takes to build a home.
Mr Ryan said the total outlay for a new apartment in an infill development is also being driven by escalating taxes and regulatory costs.
“A whopping $236,000, or 32 per cent, of the cost of a new apartment in Melbourne is government taxes, regulatory costs and charges. This is $47,000 higher compared to the 2019 Report.
“In order to increase supply, lower the cost of housing and meet growing demand, governments at all levels need to take a fresh look at ways to reduce the taxes, charges and delays they impose on new home building – this will be the key message in HIA’s 2025-26 State Budget submission,” concluded Mr Ryan.
Statutory Taxes, regulatory costs and infrastructure charges on Melbourne Housing
For more information please contact:
Land prices a roadblock to 1.2 million homes target
“The median price of residential land sold nationally jumped by 6.8 per cent over the 2024/25 financial year, more than three times faster than consumer price inflation over the same period,” stated HIA Chief Economist Tim Reardon.
Time to stop playing politics and fast track overdue EPBC reforms
“The Housing Industry Association (HIA) is calling on all parties to park the games and fast track the delivery of the long overdue EPBC reforms by the end of this year,“ HIA Managing Director, Jocelyn Martin said today.
Audit must not slow delivery of new homes under HAFF
The Housing Industry Association (HIA) welcomes the announcement of an audit into the Housing Australia Future Fund (HAFF) but cautioned that the review should not delay or derail the urgent task of increasing Australia’s housing supply, HIA Managing Director Jocelyn Martin said today.
Rezoning paves the way for Gosford City Centre transformation
“The announcement that the NSW Government will fast-track a major rezoning of Gosford City Centre, unlocking 1,900 new homes across 283 hectares, provides an exciting opportunity for the Central Coast,” commented HIA Hunter Executive Director, Craig Jennion.