The Queensland Government's promise of delivering 'a home for every Queenslander' cannot be fulfilled under the current tax model, which is seeing more than one third of the cost of new homes and apartments made up of taxes, fees, and charges.
New research released today by the Property Council of Australia shows the true cost, and impact, of government taxes on new housing supply in Queensland.
Property Council of Australia Queensland Executive Director Jess Caire said the statistics were alarming and showed how the state's taxes were directly impacting home ownership and affordability.
"This research shows that 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," Ms Caire said.
"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.
"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."
Ms Caire said Queenslanders pay more fees and taxes on new homes than their New South Wales neighbours (NSW: 25 per cent).
"I know Queenslanders love beating the Blues in footy, but the current tax settings mean we are well and truly losing the tax state of origin to our southern counterparts," she said.
Ms Caire said that while the Property Council of Australia welcomed the State Government's renewed focus on tackling the housing crisis, as yet there had been no changes to outdated tax settings.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."
