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Beware the building cost of carbon tax
June 8th 2012
The introduction of the carbon tax on July 1 has received much attention, with most commentators acknowledging that it will have far-reaching implications.
Despite this, Master Builders has been surprisingly unsuccessful in pointing the spotlight at the inevitable impact the carbon tax will have on the cost of building and, in turn, housing affordability.
Unlike some industries, the building and construction sector is neither emissions-intensive nor trade-exposed.
But, despite direct emissions from the industry being quite low in comparison to other sectors, the price on carbon will have a significant impact because the sector uses many emissions intensive inputs such as cement, bricks, aluminium and glass.
The rising cost of construction will impact both supply and demand: The cost of building will rise, having effecting demand.
Click here to find out more.
Article from The Courier Mail, by Paul Bidwell, June 8th 2012