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“We cannot tax our way out of the housing affordability problem. The solution is less tax on housing and less government distortions on the market.
“Reviews of housing taxation, including the Henry Tax Review, are consistent in identifying the need to solve the supply problem before considering more taxes on homes.
“The RBA, Productivity Commission, Federal and State Treasurers have all identified the constraints on the supply of housing as an underlying cause of the housing affordability challenge.
“Addressing affordability requires a coordinated effort by all tiers of government to allow the industry to respond with the type and location of housing required to satisfy the pent-up demand.
“It is illogical to conclude that reducing opportunities to provide rental accommodation can make a meaningful impact on housing supply and rental affordability.
“As was the case in each consideration of changes to tax settings in the past, it is government policies that remain the primary cause of the shortage in housing supply.
“Governments continuing to blame migration, local investors and foreign investors for the housing crisis falls well short of the truth,” Mr Reardon concluded.
The Housing Industry Association (HIA) is calling on the Victorian Government to abandon its proposed legislation that would create a legislated right to work from home, warning the changes would impose additional regulatory pressure on businesses already struggling.
The Housing Industry Association (HIA) has called for a three-month extension of the fuel excise relief and pause on heavy vehicle road user charges that lapse on 30 June, which risk triggering another round of housing materials cost increases.
“Today’s HIA Feasibility Forum highlighted that significant changes are needed to make new housing projects stack up,” said Brad Armitage HIA Executive Director NSW.
“HIA estimates that Australia needed to build more than 250,000 homes last year just to keep pace with demand growth and begin reducing the housing shortage. Instead, we commenced construction of just 196,000 homes. That gap is why housing affordability continues to deteriorate," stated Tim Reardon, HIA's Chief Economist.