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Carbon scheme will deliver 'triple tax slug'
2 August 2011
The Federal Government’s carbon scheme will push the cost of the Great Australian Dream up by thousands of dollars according to the state’s leading real estate body, all of which will also be subject to GST and stamp duty
Average residential building price increases of $5,000 as a result of the Carbon Tax will be even further blown out by more than $740 in additional GST and stamp duty imposts, according to the Real Estate Institute of New South Wales.
“It is bad enough that the Carbon Tax will push up the cost of an average new home by at least $5,000, but to then make that increase subject to not one but two existing taxes, is just unconscionable,” said REINSW President Wayne Stewart.
“New home buyers will be delivered a ‘triple tax slug’ that for many will simply mean the final nail in the coffin of their Great Australian Dream.
“A Carbon Tax increase of $5,000 on the average new home which incurs a 10% GST, and is then subject to stamp duty, will inevitably knock some buyers out of the market permanently.
“When cost of living pressures are making home ownership harder, the Federal Government should be looking at ways to make buying a home easier and not harder.
“By allowing a tax (carbon) on a tax (GST) on a tax (stamp duty) is to simply abandon those struggling to buy their own home.
“An increase of $5,000 in the cost of materials for a new residential home flowing form the Carbon Tax will result in approximately $747.50 in both GST and stamp duty.
“Combined the three taxes will result in an increase of $5,747.50 – all of which will be borne by the purchaser.
“The government has either not thought through the impact of the Carbon Tax on the real estate sector or is hoping home buyers won’t pick up on it and will just cop it.
“REINSW is strongly opposed to this blatant tax gouging, which simply makes the home ownership dream impossible for struggling families and workers.
“The direct and indirect impacts of the Carbon Tax on cost of living will seriously erode housing affordability and result in a generation of Australians who will never know the feeling of owning their own home,” said Mr Stewart.
Please direct media enquiries to Julian Brophy on 0408 276 749.
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