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Carbon tax rejected by residential building industry
Released 24 May 2011

The Housing Industry Association (HIA) has declared its opposition to the Federal Government’s carbon tax.    

HIA Chief Executive Graham Wolfe and the Federal Government’s post-election announcement on carbon pricing is already impacting negatively on confidence levels and investment certainty across Australia.

“If implemented, its impact on housing affordability, Australian manufacturing, capital investment and jobs will be significant,” Wolfe said.

“HIA’s position on the Federal Government’s proposed tax on carbon emissions was revisited by its National Policy Congress and National Manufacturers Council at HIA’s national conference. Both peak bodies were unanimous in their rejection of any carbon tax, pointing out that a tax on carbon emissions will flow through to adversely affect all building products and all sectors of the construction industry,” Wolfe said.

He said the National Policy Congress and the National Manufacturers Council members were in no doubt that a carbon tax will damage the Australian economy and particularly the building industry, whose consumers cannot afford to pay this new tax.

“Building product manufacturers and new home buyers across Australia will be the hardest hit by a carbon tax.

“There will be an immediate and inevitable flow through of cost increases across the broad range of building materials, products, fixtures and fittings,”

At $20 per tonne, Wolfe said a carbon tax will add an extra $6,000 or more to the cost of building an average new residence, placing additional affordability pressure on new housing activity, and adding $43 extra per month to family mortgage repayments.

“That adds a further $12,800 in repayments over a 25 year loan,” he said.