Carbon tax to hit struggling housing sector

The Labor/Greens carbon tax will hurt homeowners, renters, builders and manufacturers who are already struggling under Labor’s financial mismanagement and the worsening housing shortage.

“Julia Gillard’s $23-per-tonne carbon tax will add at least $5,000 to the cost of building an average new home and this is expected to flow on to the cost of existing homes,” Senator Payne said.

“With a housing shortage of 202,400 and low levels of housing affordability, the last thing Australians need is a hike in the cost of construction and development that will be passed on to owners and renters through higher mortgage repayments and higher rents.

“The carbon tax will add $43 per month to the average mortgage repayments, representing a further $12,800 over the life of the loan.

“Investors in new housing will also pass on the higher repayments to their tenants in the form of higher rents.

“Builders in most states and territories already have to meet strict energy efficiency requirements. The industry does not need another impost, especially one that will provide no environmental gain.

“The housing sector is dominated by small sub-contractors who will not receive any compensation under the carbon tax. These people - who are effectively being punished for being self-employed - are the big losers out of Julia Gillard’s wealth redistribution.

“The carbon tax will also cost jobs in the Australian building product manufacturing sector, which will struggle to compete with similar producers in countries with no carbon tax. Building products like kitchen cabinets and benchtops, windows and doors will all increase in price; again, for no environmental gain.

“The housing sector is just another victim of Julia Gillard’s ‘not under the government I lead carbon tax’.”