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EXCESSIVE taxes from three tiers of government on top of the rising costs of supplies and labour are pricing homebuyers out of the market, Master Builders Australia says.

Albury-Wodonga MBA president Dale Paddle said the association was closely monitoring the situation but said developers and builders were at the mercy of rising government costs which are passed on to consumers.

"The breakdown of the cost of buying land and building a home would shock many people - it goes a long way to explaining why it's so expensive to buy a house and land package," Mr Paddle said.

"With three tiers of government, the costs for a developer regarding a block from when it's in the paddock to putting the key in the door for how much tax we pay to those three government authorities is staggering.

"We (the MBA) are examining the costs now and we think it's going to be more than 40 per cent - so if someone's building a house and land for $600,000, 40 per cent goes to those three tiers.

"We just priced up a subdivision that's got 150 blocks in it and there's over $3 million in council fees."

Master Builders Australia CEO Denita Wawn said a "significant contributor" to the cost of housing developments came from charges levied by state and local governments on new housing land developments for utility, transport and communication. 

"In addition, embedded land costs, including land shortages caused by inadequate land release policies and planning delays at the state and local government level all contribute to the increasing costs of shovel-ready land for new housing," Ms Wawn said.

"These charges can add up to 30 per cent to the cost a new housing development. Master Builders was pleased to see the new government commit during the election to working with state and territory governments ... to address these issues."