Carbon Tax and its impact on new developments in QLD


It is no doubt amongst industry experts that The Gillard Government’s controversial Carbon Tax will have a negative impact on new developments in Queensland.

Brickworks’ Managing Director, Lindsay Partridge, said to the Sydney Morning Herald that the Carbon Tax could cause long term damage to new development.

“The end result will be an exodus of manufacturing industries and investment offshore, jobs will be lost, the cost of housing will increase and there will be no change to carbon emissions,” Mr Partridge said to the Sydney Morning Herald.

“The sooner the current plan is abandoned the better,” he added.

The Government has vowed that the Carbon Tax will be paid by the “big corporations” and the grand polluters. However, the reality is that the companies will only push the extra charge further down the line until it eventually reaches the consumers, who will draw the short straw at the end of the line.

In the Government’s Clean Energy Plan they declare to support everyday Aussies:

“To assist households with price impacts, there will be two rounds of tax cuts and increases in pensions, allowances and benefits.”

The second round will come in 2015-16 and will further raise the tax-free threshold to $19,400, which will free 1 million Australians from paying tax. Unfortunately that does not help the remaining 22 million of the population.

Australian Bureau of Statistics found that the average annual cash earnings of all Australian employees to be $52,535. Obviously, the “average Aussie” will then not be enjoying the Government’s assistance.

Master Builders Executive Director, Graham Cuthbert, said to the Brisbane Business News that the carbon tax will raise the cost of new homes and renovations, worsen housing affordability and cripple the confidence in an already ailing Queensland building industry.

Mr Cuthbert also said the federal government’s announcement failed to address how the cost of building will be impacted by the carbon tax.

“We know trade exposed industries, like steel manufacturers, will be offered assistance and some consumers have been offered compensation, but it’s not enough to cover all the cost increases that are inevitable,” Mr Cuthbert said to Brisbane Business News.

Real Estate expert, Geoff Brand, owner of Geoff Brand Gold Coast Real Estate said the Carbon Tax will kill Queensland.

“Builders in South-East Queensland will find it harder, with the new tax expected to increase building costs by around $1,500 per house,” Mr Brand wrote in his blog.

LNP Leader Campbell Newman said in a press release it will be far worse than what Mr Brand predicted.

“Industry experts say that Labor’s carbon tax will add between $5,000 to $15,000 to the cost of building a new home,” Mr Newman said.

“The carbon tax will drive up costs in a number of key industries, including power, steel, building materials and transport,” Mr Newman added.

As always, the SSKB Team is happy to help you achieve your desired outcomes in your strata community. Although SSKB do not provide sustainability and carbon tax consultancy, we’d be happy to point you in the right direction. Contact our team on 5504 2015 or consulting@sskb.com.au for advice on all things strata

Sources:

http://www.geoffbrandrealestate.com.au/carbon-tax-will-kill-queensland/

http://www.smh.com.au/business/carbon-tax-will-hurt-housing-affordability-brickworks-20110324-1c7md.html

http://www.brisbanebusinessnews.com.au/article2093/CARBON%20TAX%20OVERVIEW.html

http://lnp.org.au/index.php?option=com_k2&view=item&id=355:housing-industry-gets-nailed-by-carbon-tax&tmpl=component&print=1

http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;db=LEGISLATION;id=legislation%2Fbills%2Fr4653_third-reps%2F0002;query=Id%3A%22legislation%2Fbills%2Fr4653_third-reps%2F0001%22

http://www.cleanenergyfuture.gov.au/clean-energy-future/securing-a-clean-energy-future/#content01

http://www.abs.gov.au/ausstats/abs@.nsf/mf/6306.0/

http://www.ato.gov.au/individuals/content.aspx?menuid=0&doc=/content/00223292.htm&page=4&H4

 

 



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