The Housing Industry Association (HIA) welcomed the ACT Government's new housing strategy adopted by the Australian Government of the Australian Capital Territory, although it noted that the plan did not offer a good solution in the field of taxation.
Greg Weller, ACT's executive director for ACT and South New South Wales, said the strategy had sparked the work and consultation carried out by the government and others sectors concerned. At the same time, he presented many housing-related issues in ACT.
Part of the approach was to allocate 15% of all government-released land to public, community and affordable housing, including infill in urban areas and development in the new suburbs. The number of additional dwellings delivered each year is expected to increase to about 630.
Commenting on the whole strategy, Weller pointed out that more complex problems were neglected.
"Similarly, it offers a number of options for solving certain problems. However, he does not recognize the elephant in the room as to the affordability of housing, which is the level of taxation, "he said.
Referring to a study, it was revealed that the taxation level of a new house in a new area in a capital can reach 44%. "One of the biggest contributors is the stamp duty, and although the ACT government has laudably committed itself to the phasing out of the tax, the fact is that even if the applied rate goes down, the amount collected by the government continues to increase due to the high cost of homes, "explained Weller.
It was also reported that the government was reassessing the lease modification fees, which threatened to defeat a number of projects and affected the type of development that the city should support.
In addition to insisting that the industry needs strong commitments regarding some plans rather than promises of consultations, HIA indicated that the repeal or reduction of this tax should be a priority.
"HIA welcomes the strong commitment in the Strategy to maintain a healthy pipeline and development pipeline, rightly recognizing that there is a real connection between supply and affordability" concluded Weller.
"This commitment is well supported by the government's publication of the ACT Property and Property Report."
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