Excessive taxes and paperwork inflate housing costs in Sydney and put buyers who are often unaware of these burdens, a recent study found, according to the latest study by the Housing Industry Association of Australia.
Taxes on housing account for about half of the cost of a set of houses and land and about a third of unit costs in Sydney, said HIA NSW executive director David Bare.
"Stamp duties on the land and the house, GST, property tax, council rates, payroll, income taxes and corporate taxes combine to generate nearly 180 $ 000 in taxes on a typical set of houses and land, development costs or $ 220,000 in bureaucracy involved, "he said.
The duties imposed on housing are almost at the same level as the taxes on cigarettes and alcohol, making the housing market one of the sectors of the economy the more heavily taxed.
"Housing is an absolute necessity and current taxes on housing have limited the supply of housing and have led to rising real estate prices in recent decades, resulting in higher rents and unnecessary financial pressure on all Australians, "said Bare.
According to the study, 10% of revenue generated by the three levels of government and 14% of GST revenues come from taxes and paperwork – and Bara think that affordability housing would likely deteriorate due to soaring costs.
"We need a coordinated national approach to address the affordability problem, which includes the taxation and regulation system that limits the supply of new homes and that is the the root cause of the accessibility problem, "he said.
These additional costs add to the barrier many Australians face, preventing them from entering the market.
"More than 92 percent of Australian renters aspire to become homeowners, but less than half of them expect to achieve this goal," said Bare.
The worst part is that many buyers do not even know how much tax they pay, knowing that some of these costs are hidden, said Jane Fitzgerald, director of the Property Council of Australia
]
"They are the second largest cost of a new home after construction itself, and by inflating the cost of a new home, these taxes and fees increase the amount of a mortgage, which means that Australians have to borrow more to pay the costs imposed by the government, "she said.
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