$50,000 whack on home buyers if GST rises: Peter Icklow

July 21, 2015


The property developer, Peter Icklow, chief executive of Monarch Investments, said real estate would be adversely affected by any GST hike.

“It’s going to whack another $50,000 on every new home,” he told The Australian Financial Review.

It follows debate over lifting the GST to 15%.

NSW Premier Mike Baird says he was willing to talk about the issue.

Under the current rules, new homes are subject to the GST, which adds roughly 10% to the price, but buyers of established homes pay nothing.

The Urban Development Institute of Australia says at the current GST rate of 10%, a new home sold at Australia’s median dwelling price of $571,500 included a GST component of $51,955.