23 April 2008

Federal Government 2020 Challenge to Reform Tax on Housing

The reality is that housing affordability is being taxed out of existence for this and the next generation by Governments with taxes and charges increasing by 40% since the introduction of the GST.

Archicentre, the building advisory service of the Royal Australian Institute of Architects today welcomed the Prime Minister's comments on tax reform and called for an immediate and national focus on the myriad of housing taxes to attack the housing affordability crisis.

Robert Caulfield

Mr Robert Caulfield, Managing Director of Archicentre said, "Home buyers and businesses involved in the housing industry are being forced to constantly cope with the whims of change of three levels of government which had used SHELTER, the most fundamental cornerstone of Australian society, as the golden tax egg. "As a result we have a higher level of expenditure in many welfare and health areas as a result of the impact of mortgage stress and increasing numbers of homeless people. "If we can have a national survey of petrol pricing by the Australian Competition & Consumer Commission, the Prime Minister Mr Rudd stands to gain wide community support by implementing a national transparent survey of tax on housing. "Added to the taxation are the high non productive costs of Russian Roulette town planning at local government level with many of Australia's six hundred councils having their own individual interpretations on planning and building regulations."

Mr Caulfield said that every time a council changes its regulations, varies its policies and holds up a planning or building permit, it costs money which in the end is passed onto the home buyer.

"Financial advisors in the superannuation industry are now by law required to declare once secret commissions. The time has come when the sale price of land or a house should include a declaration of the amount of taxes and charges levied on the home buyer by governments.

"The taxing of home buyers and the cost of red tape in the housing industry is the debate Australia has to have to ensure the Great Australian Dream does not become the Great Australian myth, Mr Caulfield added.

www.archicentre.com.au
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