The Housing Industry Association is supporting Prime Minister Malcolm’s Turnbull’s hesitation over a proposed GST increase.

 

“The government is right to be apprehensive about increasing the GST on new housing, which would be a big blow to one of the bright lights of our post mining boom economy,” HIA spokesman, Graham Wolfe said.

 

Wolfe says an increase in the GST to 15% would add $30,000 to the price of a house-and-land package, and $60,000 over the life of a loan in repayments.

 

According to Wolfe, new housing is already one of the most heavily taxed sectors of the Australian economy, with the tax burden accounting for 44% of the final price of a new house-and-land package.