Australia's #1 industrial directory for equipment & suppliers

'Swift end' needed for carbon tax, housing industry urges

30 October, 2013

Federal parliament needs to give swift passage to the bill to repeal the carbon tax when it sits in November, the Housing Industry Association (HIA) has urged in a recent statement.

"The carbon tax is bad for housing affordability, and the housing industry will welcome the introduction of the bill to dismantle it," Graham Wolfe, HIA spokesman, said.

"Modelling conducted prior to the introduction of the tax projected an increase of between 0.8 per cent and 1.7 per cent increase in the cost of building a home, and we have not seen any evidence to the contrary."

"The housing industry implored the previous government not to introduce the tax, and we are now asking in the strongest terms that all sides of politics support its repeal."

"It is a bad tax.

"It adds to the burden on people buying a new home, particularly those who are trying to get into the housing market for the first time, and is a hand-brake on jobs in home building, manufacturing and related sectors including retail, landscaping and whitegoods.

"Imposing the carbon tax across the range of products and components that comprise a new home means that a tax multiplier effect occurs on the largest purchase most people will make in their lifetime."

"And the key question is, how will this help improve the environment?

"The tax is applied to new homes, yet these are much more energy efficient than existing ones.

"This is also no transparency about where the carbon tax is adding to the cost of building a home, and therefore the homebuyer can't make decisions or change behaviour to avoid paying for it.

"There is little to be gained by dragging this process out any longer than need be."

"Industry and customers' needs certainty, particularly as contracts for new homes are being priced and written many months in advance."

Wolfe concluded: "The best way to achieve this certainty is to quickly dismantle the tax."

View comments (4)

Have your say...

We welcome thoughtful comments from readers
Reload characters
Type the characters you see in this box. This helps us prevent automated programs from sending spam.
danno1 | Monday, November 4, 2013, 11:22 AM
Yep, constructing more energy efficient homes with more energy efficient materials is a complete waste of time. Negative gearing for existing houses I thought would be pricing most first home buyers out of the market, but hey why not blame the Infinitesimally small impact of the price on carbon, I mean everyone else is at it!
Goldie | Monday, November 4, 2013, 11:31 AM
If there is no transparency as to where the tax is being applied I can only assume the industry has no idea how much consumers are paying. This however runs counter to this story where they are seeking the abolition of a tax, the amount of which they cannot identify? Just like the dropping of the requirement for water tanks in Qld would have made no difference to the bottom line pricing for new homes, the scrapping of the carbon tax will have little or no difference on the price we currently pay, despite what the pollies would have us believe. WE DONT KNOW HOW MUCH WE ARE PAYING NOW SO HOW IN HEAVENS NAME ARE WE GOING TO KNOW WE HAVE GOT THE NECESSARY PRICE REDUCTION. GILLARD DID THIS DELIBERATELY.
Quale | Wednesday, November 13, 2013, 11:14 AM
I don't get it, here the HIA are blaming the so called carbon tax for adding costs to new housing. At the same time the building industry is going gangbusters with record low interest rates, the market is filled with people who can't afford new housing, and those wanting to negative gear. When interest rates eventually go up, the bubble will burst, don't blame the carbon tax, it is doing good work.
Goldie | Saturday, November 16, 2013, 1:12 PM
Quale; Not sure the building industry would agree with your claim that they are "going gangbusters". There may be more movement than we have had for a while but they are the sale of existing houses not the construction of new ones. Also Can you tell us what 'good work' the carbon tax is doing as the only difference that I can see coming out of it to date is a gilt edge excuse by all and sundry, especially governments to make many goods and services more expensive. I am happy to be proven wrong as like most, I think we are entitled to know what the 'unknown' amount of tax we are paying is actually providing and what effect it has had on global emissions. I think I know he answer to the latter but would be interested in your take on it.