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{{propApi.successMessage}} {{region}} Change locationLabor’s Absentee Owner Surcharge ‘cut’ won’t deliver affordable housing
Labor’s Absentee Owner Surcharge ‘cut’ won’t deliver affordable housing
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HIA Executive Director Victoria said, HIA welcomes proposals to cut taxes and other charges but there are too many details missing from the announcement today to have any confidence this is a useful tax change.
“A number of questions need to be answered. Will the entire surcharge be cut or will it only be reduced? What will qualify as affordable housing worthy of the cut? Why does a developer need to meet the Development Facilitation Program criteria to qualify for a cut?
“An even simpler question also needs to be answered. Most housing that is affordable and indeed being purchased by consumers is detached housing. Why is the government therefore limiting a tax cut allegedly intended to increase affordable housing stock to medium and high-density residential development with an affordable housing component and subject to Ministerial approval?
“In any event cutting the AOS is very unlikely to be sufficient to make these medium and high-density residential development projects feasible. Much more is needed. Not just tax cuts but also reductions in red tape and other government burdens.
“HIA agrees that the Absentee Owner Surcharge should be cut. But it needs to be cut completely and not just for government preferred projects which future homeowners’ purchasing decisions suggest are not wanted,” said Mr Ryan.
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