Taxes obstacle for NSW residential industry

By |

The New South Wales residential building industry is being stifled by red tape and taxes leading up to the state election, according to the Housing Industry Association (HIA).

A large portion (43%) of a new house and land package's cost of is made up of taxes, charges and levies from all three tiers of government. On top of this, the policies implemented by the state government continue to add to the tax burden for the housing industry, according to David Bare, HIA executive director NSW.

Several regulations and taxes have been implemented or proposed in the last 18 months, each one having a negative effect on housing affordability and supply, Bare said.

These include slashing caps on Section 94 development contributions, adding $20,000 to $40,000 per home; increasing the BASIX energy efficiency targets, adding an average of $10,000 per new dwelling; introducing a 2% defect bond and an additional double-barrel inspection regime for strata developments.

These modifications could easily account for an additional $70,000 to $90,000 per home, and once applied, they may be subject to stamp duty, said Bare.

With the issues mentioned above, HIA asserts that all new legislation and regulation affecting the housing sector should be subject to a thorough public regulatory impact assessment.

"There are many things our state politicians can consider to help housing supply and affordability that don’t require drastic structural change," said Bare.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Top Suburbs : redcliffe , revesby hts , coburg north , sunshine , cardiff south

SHARE

Get help with your investment property



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here