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{{propApi.successMessage}} {{region}} Change locationLifting taxes won’t get more homes built
Lifting taxes won’t get more homes built
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“Housing is already one of the most highly taxed sectors in the Australian economy,” HIA Managing Director, Jocelyn Martin said today.
“Independent research tells us that nearly half the cost of a new house and land package in capital cities is made up of taxes, fees and charges, and the tax burden on apartments is a similar story.
“This is already reducing the ability of the market to deliver new homes, because more and more the feasibility does not stack up for projects of all sizes, even when approvals are secured.
“Changing CGT arrangements will be akin to a new tax on an already overburdened market.
“Last year two in every five homes was financed by an investor to add to the supply of rentals, so the contribution they make to new housing can’t be overstated. If we increase the tax on investors there is little doubt that they will seek opportunities elsewhere, or if they remain in the housing market there will be upward pressure on rents to compensate.
“The construction industry is currently well below capacity, with the first year of the Federal Government’s commitment to build 1.2 million homes yielding around 60,000 homes less than the required target.
“Therefore, every investor that leaves the market represents one less rental property, not an additional family into their own home.
“The only way that Australia’s housing crisis for both owner-occupiers and renters will be addressed is through building new homes. It is a quite simple equation based on the fact that we have more households seeking accommodation than we do homes.
“Housing supply is now a macroeconomic problem. If we want to ease inflation, improve productivity and restore affordability, we must remove the barriers preventing new homes from being built.
“HIA’s recent 2026–27 Federal Pre-Budget Submission outlined a suite of supply-side reforms across taxation, finance, infrastructure, planning, skills and regulation to support delivery of the government’s target.
“The focus of government must be on reducing barriers to increasing supply of housing, rather than going to back to the well yet again to try and squeeze more revenue out of housing,” concluded Ms Jocelyn Martin.
For more information please contact:
WA Cost Plus Contract Update: What Members Need to Know
The WA Cost Plus Contract has been updated to improve clarity, accuracy and usability for builders. Changes include revised contract schedule items, updated document references and a new clause covering contract interpretation and document precedence.
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HIA provided additional feedback regarding the SRG proposal papers for construction, falls and infringement offences.
2026-27 HIA SA Pre-Budget Submission
The Housing Industry Association (HIA) makes the following submission to the Treasurer and the Department of Treasury to inform deliberations ahead of the 2026-27 South Australian Budget.
Budget in Reply signals strong focus on productivity, investment and housing supply
“The Housing Industry Association (HIA) welcomes the ambition of the Coalition’s Budget in Reply handed down tonight, including measures that support business investment, improve productivity and boost housing supply,” said HIA Managing Director Jocelyn Martin.