The forgotten cost in the push for more affordable housing is the level of tax on new home buyers.
In some new communities, the government take on a block of land – in stamp duty, GST, land tax, development fees and infrastructure charges – can be as much as 40 per cent of the total cost.
In Sydney the total impost, including that last hit of stamp duty, can be more than $100,000. In a tight market, the developer has no choice but to shift the cost straight to the end buyer.
In essence, governments are talking the talk on housing affordability whilst stinging new home buyers to boost their revenue.