Qld state taxes impact home affordability: Property Council

Research released by the Property Council of Australia (PCA) has revealed the “true cost and impact” of the Queensland state government’s taxes on new housing supply in the state.

According to the research, government taxes, fees, and charges make up 32 per cent of the total cost of a new home and 33.3 per cent of a new apartment.

PCA Queensland executive director Jess Caire said that these statistics were “alarming” and revealed how “the state’s taxes were directly impacting home ownership and affordability”.

“Alarmingly, this means Queenslanders are spending the first nine years of a 30-year mortgage for a new house and land package paying off taxes, fees and charges – plus interest,” she said.

“For a $730,000 mortgage, that equates to a whopping $233,440 in taxes, fees and charges.

“It’s an extraordinary finding and, at a time when Queenslanders are struggling to put a roof over their family’s head, it shows how government can tackle the housing crisis head-on – by reducing these taxes.”

According to Caire, Queenslanders are paying more fees and taxes on new homes than those in NSW, where taxes, fees, and charges only make up 25 per cent of the total cost of a new home.

While the PCA has welcomed the Queensland state government’s renewed focus on addressing the housing crisis, Caire stated there have not yet been any changes to “outdated tax settings”.

“We simply cannot see a world where the government can deliver ‘a home for every Queenslander’, when there hasn’t been a review of the prohibitive tax settings that add one-third to the cost of a Queensland home,” she said.

“The upcoming State Budget provides the perfect opportunity for political bravery by tackling the tax settings that have been overlooked throughout the entire housing affordability debate.

“We encourage government to adopt a ‘do no harm’ approach to policy setting that doesn’t break the industry, or discourage institutional investors, who are taking on the true financial risk of solving our housing crisis.”

This research comes as the state government announced that it will open up its $350 million Incentivising Infill Development Fund to applications on 10 June.

The $350 million Incentivising Infill Development Fund (IIDF) aims to fast-track the assessment of development applications for infill housing developments that could deliver affordable and diverse housing.

[RELATED: Qld, Victorian governments move to ease housing undersupply]