Tuesday 3 July 2012

Building carbon confusion

 

Building carbon confusion

The limited information and scaremongering about the cost impacts of the carbon tax will apparently put more than 50 per cent of builders at risk of prosecution by the Australian Competition and Consumer Commission for misleading consumers about the carbon tax. These align with the first set of estimates, but are significantly higher than the revised figures all these groups have since released.

We believe builders are at risk because the political debate has created a false sense of security for the building industry: many builders believe they don't need to learn about this new tax because it will be removed after the next election. 8-1. 8 per cent, after factoring in industry assistance.

We believe there is a silver lining in this new tax for the industry to better connect with customers - individuals and families living in their homes - about creating a much greater quality of life.

The survey showed 51 per cent of builders intend to raise prices by up to 5 per cent because of the carbon tax and a further 27 per cent said they would increase their prices by up to 10 per cent.

The guide also highlights the other risk/opportunity for builders: product substitution to reduce upfront carbon costs could be the preferred strategy of builders, but if they are not careful, the substituted materials may result in a lower star rating and increase house operating costs.

While the actions of industry associations are to be expected, and realistically are not a problem in Australia's political and democratic system, now that the carbon tax commences, the real problem is protecting the builders from unwittingly breaking the law.

Unfortunately the advent of new legislation that impacts the construction industry is only explained as cost increases; this obviously causes pain and grief for builders already struggling to deliver an affordable product at fair margins. The Housing Industry Association (HIA) quotes a 0.

The guide is authoritative, but written in simple language.

While builders will not report or pay for emissions directly, the risk is that they don't understand where exactly carbon occurs in the homes they build (see Figure 2) and as such they can't say the price rise they experience is the result of the carbon tax. This research supplies a valuable first step for many builders in understanding how carbon pricing affects them, their suppliers and their customers. 7 per cent increase, the Property Council of Australia is saying $2,771 - $3,667 increase for a 200 square metre case study (or 1. 7 per cent) and Master Builders Australia believes the initial impact will be 0. 3-1.

Building carbon confusion



Trade News selected by Local Linkup on 03/07/2012

 

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