While there are lots of debate on carbon tax, the Housing Industry Association has declared its opposition.
It argues that a tax on carbon emissions will flow through to adversely affect all building products and all sectors of the construction industry.
“Building product manufacturers and new home buyers across Australia will be the hardest hit by a carbon tax,” says HIA’s chief executive, Graham Wolfe.
“There will be an immediate and inevitable flow through of cost increases across the broad range of building materials, products, fixtures and fittings,” says Wolfe.
Wolfe says at $20 per tonne, a carbon tax will add an extra $6000 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,” Wolfe says.
Hence the carbon tax means three things for me:
1. Property price will have to increase, especially for new developments.
2. Consequently, home buyers and property investors will have to pay more mortgage.
3. House renters will then have to pay higher rents due to above two items.