Victoria Housing Tax "Excessive"?

According to a recent study, housing taxes have been found to limit housing supply and inflate prices in recent decades, putting unnecessary pressure on Australians.

The Housing Industry Association (Association of Housing Industry) commissioned the Center for International Economics to conduct a bottom-up survey on the extent of taxes and paperwork related to housing costs. The evaluation revealed that 10% of all government revenue is generated by housing taxes.

New homes are one of the most heavily taxed products in the economy, behind alcohol, tobacco and gambling, which are taxed, says Fiona Nield, Executive Director of HIA Victoria.

"In the ten years necessary to put on the market of a set of houses and grounds, the long and long list of costs and regulatory taxes represents up to half the cost from the new set of houses and land in Sydney and up to 37% in Melbourne, "she said.

Nield said that a potential buyer in Melbourne might need $ 130,000 to cover the additional costs, which include stamp duty, GST, property tax, board rates and other taxes. required. This figure does not include additional development costs of $ 25,000 or $ 80,000 due to bureaucracy. These additional costs make the mortgage for homebuyers more expensive by 60% to 100%.

"Governments have been temporarily suspended from the challenge of affordability, as the recent fall in house prices and existing interest rates have offset the impact of some of these taxes. and administrative formalities, "she said.

As the housing market begins to gain momentum, she said that affordability would deteriorate again unless there is structural reform around the property. 39, imposition of taxes.

"We need a coordinated national approach to address affordability, which includes the taxation and regulatory system that limits the supply of new homes and that is the the root cause of the accessibility problem, "she said.

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