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Anaylst to PCA: Carbon Tax to Balloon Construction Costs Much Higher Than Anticipated

According to Allen director Kerry Barwise the actual figures will depend on how much of the government’s industry assistance to groups like steel manufacturers was passed onto the construction sector.

In an AFR article, Mr Barwise says price impacts will also be influenced by location, building type and the energy efficiency of both the construction methods and the completed building.

Grocon said the tax would eat into between 30 and 50 per cent of the building’s margin and about 10 to 12 per cent of a development margin.

Owners are able to pass costs onto tenants on net leases.

About Marc Pallisco

Marc is a leading Real Estate freelance writer, author and analyst. He is also the founder for Realestatesource.com.au and is also employed as lead property writer for The Age. He currently resides in Melbourne, Victoria.

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