Powered by MOMENTUM MEDIA
subscribe to our newsletter
Government must reduce upfront housing costs, says industry body

Government must reduce upfront housing costs, says industry body

The Housing Industry Association has called for the government to increase funding for the Housing Finance and Investment Corporation to develop measures that could ease affordability pressures for home buyers.

In a pre-budget submission, the Housing Industry Association (HIA) has advised the federal government to explore opportunities that could reduce upfront home buyer levies.

HIA believes that the government should ramp up funding for the National Housing Finance and Investment Corporation (NHFIC) to allow the body to investigate the possibility of adopting innovative state and local financing measures to reduce residential property entry costs.

Advertisement
Advertisement

“New home buyers are required to make significant upfront contributions to the funding of community infrastructure,” HIA noted.

“As the cost of land increases, the tax take from these home buyer levies grows and, in the last decade, they have become one of the key barriers to delivering more affordable housing in all forms.

HIA attributed high entry costs for new home buyers to increased taxes passed on by state and local governments imposed to ease “fiscal pressures” faced by the governments.

 The industry association believes that such cost hikes can be averted if the commonwealth government funds the nationwide adoption of new, innovative measures.  

“Fiscal pressure on state and local governments has been the main force behind these moves to pass down the costs of community infrastructure,” HIA stated.

“However, there are alternative methods for funding and delivering this infrastructure that could be trialled if there was an incentive for state and/or local governments to pilot these approaches.”

HIA also advised the federal government to continue funding the Smart Cities Initiative, which it believes offers practical solutions for infrastructure and planning “bottlenecks”.

[Related: Fresh calls for low-deposit home loans]

Government must reduce upfront housing costs, says industry body
mortgagebusiness

Charbel Kadib

Charbel Kadib is a journalist on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel held roles with public relations agency Fifty Acres, and the Department of Communications and the Arts.

Charbel graduated from the University of Notre Dame Australia with a Bachelor of Arts (Politics & Journalism).

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Latest News

A global investment bank has announced its plans to expand its commercial offering to multinational Australian businesses after identifying ...

Moody’s has backed the Reserve Bank’s monetary policy adjustment, adding that it expects the monetary policy boost to help revive the f...

Demand for home rebuilds in Sydney has remained stagnant over the last 12 months, despite the other challenges that have plagued the housing...

FROM THE WEB
podcast

LATEST PODCAST: Movers and shakers

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.