Mortgage payments to rise with carbon tax
By
Adam Smith
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11/07/2011 5:00:00 AM
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1
comments
Industry has slammed the Federal Government's proposed carbon tax, claiming it will add nearly $500 to mortgage payments.
The government announced details of the tax on Sunday, and set a $23 per tonne price on carbon. The tax would also include a compensation scheme for households to offset increases in energy charges. Master Builders Australia and the REIA, however, have claimed the compensation package will not cover increases in the cost of new housing.
Master Builders claimed the cost of new housing will rise by at least $5,000, adding $480 a year to mortgage payments. The association also forecast that building and construction output will be reduced by 2.5%, amounting to $5bn per annum.
The REIA echoed Master Builders' assessment, and added that the cost of renovations will also increase under the proposal. REIA acting president Pam Bennett claimed the average kitchen and bathroom renovation would increase in cost by around 2%.
"This will impact adversely on housing affordability which is already at low levels. The current state
of affordability has seen the number of first home buyers decline to only 15% of all purchases, compared to the long-run average of nearly 20%. First home buyers will bear the brunt of the Government’s inaction on compensation for the increased costs associated with a carbon tax," Bennett said.
Bennett commented that at the introduction of GST in 2000, first home buyers were compensated with the introduction of the FHOG, and said a similar scheme should have been introduced with the carbon tax proposal.
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sidbroker on
11 Jul 2011 09:57 AM
Well Julia. Now what are you doing? You cannot see past your nose can you. You think it is so easy to fix everything with your little schemes and poor decisions (please get opinion from Cattlemen and now Stock Brokers as well). Clearly you do not know what you are doing. Oh don`t bother talking with Mr. Goose he doesn`t have a clue either. Hey tell you what! Run it past Mr. Stevens and you can have his two cents as well. Actually i take that back i don`t think it is worth two cents and especially with todays interest rates.