Taxes and fees a third of new home costs

Couple worried about bills. | Newsreel
New research shows a third of the cost of a new home comes from taxes, fees and charges. | Photo: Fstop 123 (iStock)

A third of the cost of a new home in Queensland is made up of taxes, fees and charges, according to new research.

The same research, from the Property Council of Australia, showed the Queensland Government had pocketed an extra $3.5 billion from the state’s home buyers over the past three years.

Property Council of Australia Queensland Executive Director Jess Caire said the statistics showed state taxes were directly impacting home ownership and affordability.

“This research shows that government taxes, fees and charges make up 32 percent of the total cost of a new home and 33.3 per cent of a new apartment,” Ms Caire said.

She said Queenslanders were spending the first nine years of a 30-year mortgage for a new house and land package paying off taxes, fees and charges.

“For a $730,000 mortgage, that equates to a whopping $233,440 in taxes, fees and charges.

“At a time when Queenslanders are struggling to put a roof over their family’s head, it shows how government can tackle the housing crisis head on – by reducing these taxes.”

Ms Claire argued there was capacity to do so with the boost in revenue shown in the research.

“The excessive taxes, fees and charges that make up one third of the price of a new home in Queensland was yielding significant revenue for the government,” she said.

“Our research shows that over the past three years the government has received an additional $3.5 billion more than they budgeted in transfer duty and land tax alone, representing a 29 percent increase in receipts over the forecast.”

Ms Claire said while taxes were critical to providing the projects and services Queensland needed, it was important to balance the need for more revenue with the need for more housing.

“It has never been harder or more expensive to deliver new homes in Queensland, which we are seeing in the record low number of homes being delivered across the state,” she said.

“There needs to be a sensible balance that attracts investment in new homes and apartments, while funding the services needed across the state, and we are calling on the government to work with us to strike that balance.”