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Tax Cuts Solution to Crisis

Tax Cuts Solution to Crisis

Cutting taxes on home building is a quick solution to Australia’s housing crisis, according to the Housing Industry Association (HIA).

HIA Chief Economist, Tim Reardon, says as higher interest rates continue to linger, it is increasingly important that the government look at reducing the tax on homes if they want to increase supply.

“Government taxes and charges account for as much as 50% of the cost of a new house and land package,” he says.

“Governments are the biggest impediment to home building in Australia. They cannot continue to blame the consequence of their decisions on foreigners or investors who build homes and make them available for rent or sale.”

Reardon says the consequence of increasing taxes on homes is that fewer homes will be built.

Reardon says proposals by Senators Jacqui Lambie and David Pocock to limit negative gearing to new builds will not lead to increased investment in new homes.

“If politicians want to increase the supply of housing, then they should look at proposals to reduce taxes on housing,” he says.


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