There are fears that the housing market will suffer as a result of the introduction of carbon tax as first-home buyers are less likely to think about buying a property.
From July 1 2012 the cost of carbon will increase to $23 per tonne, and continue to rise by 2.5 per cent per year.
This growing cost of living, estimated at 0.7 per cent, is a consequence of the nation’s top 500 polluters passing on to the public their own increasing costs as they are forced to pay for the carbon dioxide they emit.
Taking into consideration the new carbon tax, the cost of an average residential property could increase by about $5,000-$6,000.
This could make it very hard for new homebuyers to get into the market as the new home buying public is already having to increase the energy efficiency of their homes as they are being built.
Many say that carbon tax doesn’t compensate the small businesses in the new housing market for the increased cost in their energy supply, particularly those that are manufacturing and not trade-exposed industries.
This has led to fears that jobs will dwindle, especially in the manufacturing and construction departments of the industry which include many workers overseas on 457 visas.
The longer-term impact on the industry could be the fact that those workers cannot be attracted back into the market place, with the result that the workforce is diminished permanently. Builders are concerned that from this there could arise an under build situation across Australia with a potential lack of new housing to meet the rental needs of the state and an increase to the cost of housing in the future.
It is thought that job losses could begin as early as January when the building companies begin factoring in the coming increases.
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