HIA pol­icy re­port high­lights tax­a­tion bur­den on sec­tor

Pilbara News - - Property - John Gelavis

The Hous­ing In­dus­try As­so­ci­a­tion has launched the res­i­den­tial build­ing in­dus­try’s pol­icy im­per­a­tives for the 2016 Fed­eral Elec­tion, ti­tled Hous­ing Aus­tralians.

Hous­ing Aus­tralians con­tains 40 pol­icy im­per­a­tives de­vel­oped to ad­dress the dual chal­lenges of pro­duc­ing suf­fi­cient af­ford­able hous­ing in Aus­tralia to meet both the cur­rent and pro­jected pop­u­la­tion of our na­tion.

Hous­ing Aus­tralians in­cludes eco­nomic poli­cies for growth, as well as ac­tions for im­prov­ing ef­fi­ciency, such as re­form­ing build­ing and plan­ning laws, cut­ting red tape, cre­at­ing a fair and pro­duc­tive work­place, re­duc­ing the in­equity and in­ef­fi­ciency en­trenched in the cur­rent model for fund­ing new hous­ing in­fra­struc­ture, fos­ter­ing small busi­ness and train­ing for a skilled fu­ture.

One of the 40 im­per­a­tives fo­cuses on the tax­a­tion bur­den on the Aus­tralian hous­ing in­dus­try. The HIA com­mis­sioned in­de­pen­dent re­search into the tax­a­tion of Aus­tralia’s hous­ing in­dus­try, with a par­tic­u­lar fo­cus on new hous­ing.

The re­search was un­der­taken by the Cen­tre for In­ter­na­tional Eco­nomics. The CIE col­lated in­for­ma­tion on all the taxes that even­tu­ally con­trib­ute to the fi­nal price of a new home, with fig­ures then ver­i­fied with a large num­ber of res­i­den­tial build­ing busi­nesses.

A com­putable gen­eral equi­lib­rium model was then used to anal­yse the over­all tax bur­den by in­dus­try sec­tor and to also ex­am­ine a num­ber of tax sce­nar­ios.

The re­port pro­vides com­pelling ev­i­dence that, on vir­tu­ally any ba­sis of mea­sure­ment, and in both ab­so­lute and rel­a­tive terms, the tax­a­tion bur­den borne by Aus­tralia’s res­i­den­tial build­ing in­dus­try is ex­ces­sive.

It is not only the Com­mon­wealth Gov­ern­ment that ex­tracts large amounts of tax­a­tion from hous­ing and the res­i­den­tial build­ing sec­tor. State and lo­cal gov­ern­ments also rely heav­ily on taxes and charges on res­i­den­tial prop­er­ties for their rev­enue.

The taxes an­a­lysed in­clude: the stamp du­ties levied at dif­fer­ent points in the hous­ing sup­ply chain; a raft of levies and com­pul­sory fees; the ex­ces­sive por­tion of a range of fees, charges and levies; as well as the generic taxes levied across all sec­tors such as in­come taxes, fuel taxes, pay­roll taxes and im­port du­ties. GST and the fi­nal stamp duty pay­ment cas­cade on top of these al­ready high taxes, es­ca­lat­ing them fur­ther.

When all taxes are in­cluded, the tax­a­tion on a new house in Sydney is an es­ti­mated 44 per cent of the pur­chase price. For Perth the share is 38 per cent.

I en­cour­age you to give Hous­ing Aus­tralians your strong­est con­sid­er­a­tion by go­ing to www.hia.com.au/ elec­tion where you can down­load a PDF of the doc­u­ment and view “Real Facts” for anal­y­sis on key sub­jects.

You can as­sist the as­so­ci­a­tion’s cam­paign by send­ing a mes­sage to your lo­cal politi­cian ex­press­ing your con­cerns.

John Gelavis, Ex­ec­u­tive Di­rec­tor WA - Hous­ing In­dus­try As­so­ci­a­tion.

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