No ones forcing you to read it and If you don't like it, put me on ignore. Simple.
Will the Carbon Tax increase property prices
- Thread starter Dan_p
- Start date
All that will happen is the people that do all the work from start to lock-up will get screwed on the quotes,a lot of trades i know in Brisbane are not working more then 30 hours a week,and with all the reno sideshows and at the speed they do those un-safe sites everybody thinks that's how easy it is till you hit the first elec cable and get thrown against the wall..
Not to mention the new ATO requirements for builders to report on contractors just adding to the mix for the building industry.
The ATO has been data matching on materials per work load for many years now,nothing new and it's very hard to get cash these days everyone pays on cards,i know a few painters that work for cash below 1k jobs,maybe a few older Elec's,but the workload is just not out there..
The Treasury estimates that the CPI impact will be +0.7%. That's significantly less than the GST CPI impact
The real issue, is will the CPI increases feed into wages and price growth/inflation, which then causes a negative feedback loop, causing additional CPI increases etc etc?
This cost price inflation imo, is unlikely because of the way wages are set in this country and the general level of competitiveness in our economy.
Based on the carbon tax of $23/tonne, this remains constant until we move to an ETS and a variable price. So given the impact of CPI figure, we have a one-off impact based on the $23/tonne and once this washes through the system, and there is no cost price inflationary pressures, cpi falls back. As it does when we have a spike in fruit & vegies, which then fall back to more normal levels
If the carbon price increases over time, then there is a risk of increasing inflation but that is the intent of it.
As boomtown's post said, the impact on the cost of housing is immaterial. Commodity price fluctuations in steel, copper, aluminium is far more material.
The real issue, is will the CPI increases feed into wages and price growth/inflation, which then causes a negative feedback loop, causing additional CPI increases etc etc?
This cost price inflation imo, is unlikely because of the way wages are set in this country and the general level of competitiveness in our economy.
Based on the carbon tax of $23/tonne, this remains constant until we move to an ETS and a variable price. So given the impact of CPI figure, we have a one-off impact based on the $23/tonne and once this washes through the system, and there is no cost price inflationary pressures, cpi falls back. As it does when we have a spike in fruit & vegies, which then fall back to more normal levels
If the carbon price increases over time, then there is a risk of increasing inflation but that is the intent of it.
As boomtown's post said, the impact on the cost of housing is immaterial. Commodity price fluctuations in steel, copper, aluminium is far more material.
I see the government has set up a task force ACCC to monitor who is charging extra because of the carbon tax.
I mean what is logical to me is if everything is going up because of the tax ie, fuel to transport things and people, electricity to run a business, office then don't business have a right to charge more?
Seems only logical to me.
I mean what is logical to me is if everything is going up because of the tax ie, fuel to transport things and people, electricity to run a business, office then don't business have a right to charge more?
Seems only logical to me.
Yep.
It's called making money over and above the running costs in order to survive.
They can come around to my workshop and smack me on the wrist for putting my prices up after my invoices from my suppliers show an increase from their end.
Nah; only joking;
I'll just absorb the increases, put off one more staff and work even harder and longer myself, or leave it as it is and take on a second job.
Typical delusional-not-in-the-real-world-academic-pen-pushers.
1900 jobs at FairfaX? That's nuttin'...wait 12 months after the CT and revisit the employment figures.
Or, maybe that extra $6 per week per person will stimulate a massive spend up and we'll need more staff everywhere.
oh, I'd fight against that. I LOVE chainsawing!!
It is such a stress reliever, and probably the most fun "household" job in the world. just imagine those people you are cranky with........ and chop down those trees.
great fun!
it'll be thatcher all over again.
They have a right to charge more IF their costs are going up.
Blaming the carbon tax and putting up prices when their costs haven't risen is dishonest and unethical behaviour.
Will Carbon Tax Cause Price rise?
You bet. Just look at the building companies listed as heavy polluters.
Boral, BHP, BGC, CSR
full list: http://www.cleanenergyregulator.gov...for-2012-13-Financial-year/Pages/default.aspx
You bet. Just look at the building companies listed as heavy polluters.
Boral, BHP, BGC, CSR
full list: http://www.cleanenergyregulator.gov...for-2012-13-Financial-year/Pages/default.aspx
From Your Investment Property
Carbon tax to increase cost of buying a property
The carbon tax is going to hit property investors in the wallet when it comes to the cost of home ownership, as well as the cost of living, it has been claimed.
These are the opinions of Master Builders, whose members believe that they will take a hit from the carbon tax as it comes into effect next month – and this will have a knock-on effect for buyers.
A survey by Master Builders found that 88% of builders believe the carbon tax will hurt their business over the coming 12 months. Master Builders CEO Wilhelm Harnisch said the introduction of the levy is ill-timed for the industry.
"The timing for the carbon tax's introduction on 1 July 2012 could not come at a worse time for the building industry. Industry is trying to come to terms with a host of unknown factors. This includes how to deal with supply cost increases and how they can be recovered in new and existing building contracts," Harnisch said.
Harnisch also blamed the introduction of the tax for ongoing consumer wariness.
"New homebuyers are delaying their decisions as they assess the impact of the carbon tax. This confirms other surveys that show consumers are already exercising even greater caution over fears of increased cost of living. The increased cost of home ownership and of living flowing from the carbon tax will only make matters worse," he said.
Master Builders claimed the tax would result in cost increases to the building industry, which Harnisch said builders would not have the capacity to absorb. He warned that added costs could be passed on to homebuyers.
"Housing is already highly unaffordable in many parts of Australia - not just capital cities, but also many major regional areas. The last thing homebuyers need is the cost of new home ownership, and of living, to increase," he said.
Carbon tax to increase cost of buying a property
The carbon tax is going to hit property investors in the wallet when it comes to the cost of home ownership, as well as the cost of living, it has been claimed.
These are the opinions of Master Builders, whose members believe that they will take a hit from the carbon tax as it comes into effect next month – and this will have a knock-on effect for buyers.
A survey by Master Builders found that 88% of builders believe the carbon tax will hurt their business over the coming 12 months. Master Builders CEO Wilhelm Harnisch said the introduction of the levy is ill-timed for the industry.
"The timing for the carbon tax's introduction on 1 July 2012 could not come at a worse time for the building industry. Industry is trying to come to terms with a host of unknown factors. This includes how to deal with supply cost increases and how they can be recovered in new and existing building contracts," Harnisch said.
Harnisch also blamed the introduction of the tax for ongoing consumer wariness.
"New homebuyers are delaying their decisions as they assess the impact of the carbon tax. This confirms other surveys that show consumers are already exercising even greater caution over fears of increased cost of living. The increased cost of home ownership and of living flowing from the carbon tax will only make matters worse," he said.
Master Builders claimed the tax would result in cost increases to the building industry, which Harnisch said builders would not have the capacity to absorb. He warned that added costs could be passed on to homebuyers.
"Housing is already highly unaffordable in many parts of Australia - not just capital cities, but also many major regional areas. The last thing homebuyers need is the cost of new home ownership, and of living, to increase," he said.
My 2 cents worth...Property prices are set by a supply & demand effect. I believe because of the Carbon tax, rents will have to rise with the investors passing on to the tenant higher expenses, but still leaving the investor with equal net profit margin even after passing on the rental increase, and with my experience already, especially with strata/community title expenses on a hefty increase. So the increase in rent will have to be significant just to even remain at an equal net profit margin to the investor prior to the Carbon Scam. This increase in rent will push many tenants whom wish to buy in the future out of the market for at least an extra 12 months as their savings will be chewed up by the extra rental increase and the tenant will have to reassess the increase in costs of buying and owning a property....I think this will take a long time to recover. Now back to Supply and demand..... less demand.....lower property prices. I also believe lower net yields, so investors will be low balling when purchasing as the capital gains will be non existant for years, so they will look to cash positive, but with extra expenses when owning property after the carbon tax this will be difficult as the tenants wont be able to afford the huge increases in rent and Julia aint gonna keep giving them money forever.... + Add to this the lack of confidence in the market place...............So to summarise...property prices DOWN!
but thats just my point. I cannot imagine too many businesses which costs will NOT go up.
Every business is pretty much using electricity to run things, fuel to get to places and so on.
Today's paper has the increase in rents due to carbon tax at 40c per week.
Building homes is carbon intensive. But i suspect in this weak building market that builders will absorb most of the increased costs. i don't expect the carbon tax to have an effect on property prices.
I see builders putting up their prices.
Husband has already been informed by 2 building material suppliers that certain materials will be going up.
He also told me dumping fees were going up significantly (he said 40% but didn't give info of where that figure came from).
He will certainly be passing them on - would rather work less than work for little profit (and if he had to, would lay workers off).
Husband has already been informed by 2 building material suppliers that certain materials will be going up.
He also told me dumping fees were going up significantly (he said 40% but didn't give info of where that figure came from).
He will certainly be passing them on - would rather work less than work for little profit (and if he had to, would lay workers off).
Hi Dan and nan,
Good question. On a very high level, I would estimate that prices will go up due to the Carbon Tax in the short term, and not be affected long term.
My reason for saying that is, we as a nation will have to endure a Carbon Tax in the short term, but it will be eliminated and removed as a Tax in the long term.
Scratching my head to remember the last time a government removed a tax without replacing it with another.
OK, we won't venture down that path, but I would like to venture down the path of exactly how many people in Australia supported the idea of a Carbon Tax when they last had an opportunity to officially decide, 21 August 2010 ;
Political Party..........Support..........Primary Vote %
Labor.......................No.....................37.99
Liberal......................No.....................30.46
LNP of Qld.................No......................9.12
Greens.....................Yes....................11.76
Nationals...................No......................3.73
All others...................No......................6.94
As you can see, the last time the Carbon Tax was put in front of the Australian people to decide whether they thought it was a good idea, there was only one party that actually said "we think this is a good idea" and they attracted less than 12% of the vote.
More than 88% of the voting population supported political parties who rejected the idea of the tax and said 'if elected, we won't be imposing a Carbon Tax'.
The next time the Australian voting population get a chance to voice their concerns will be sharp and swift on this issue...it will have consequences far beyond what the current polls 'suggest'....just as the Qld election result was totally different to what the polls just prior were suggesting.
Long term, there ain't gonna be a Carbon Tax, and all of these not so little fiefdoms that have been hurriedly set up in Canberra to administer and kerfuffle will be dismantled.
You've cynically twisted it around 180°.
This tax was imposed in addition to all others for no reason other than it was the price extracted from the Greens to jump in bed with them and allow the minority Labor party to form Govt. The piper had to be paid.
To repeal it will have no effect other than to **** off a few rabid Green voters, which in the context of things would have to be a good thing.
The Carbon Tax goes hand-in-hand with handouts to Labor heartland voters. Socialism.
Remove the Carbon tax, and the only affect on the population will be no handouts to Labor voters.
