Newcastle Liberals Oppose New Housing Tax as Labor Defends Contribution Scheme

The Newcastle Liberals have vowed to stop the introduction of a proposed Affordable Housing Contributions Scheme if elected on September 14, claiming the initiative will increase housing costs and make homeownership more difficult. The scheme, which was endorsed by Labor and Greens councillors in December 2023, is expected to be put forward for adoption by the new Council in November.

Liberal Councillor Callum Pull voiced strong opposition to the proposed tax, particularly its potential impact in the western suburbs, where the tax could be as high as 5%. Cr Pull argued that this would push housing further out of reach during an already strained housing market.

“In the middle of a housing crisis, the last thing we need is a tax that makes it harder for people to buy a home,” Cr Pull said. “This scheme would reduce the number of homes available to first-time buyers and drive up prices by limiting supply.”

Cr Pull called for a different approach, suggesting the Newcastle Liberals would work with stakeholders to develop an incentives-based scheme. Under this proposal, the Council would offer discounts and incentives to encourage affordable housing construction while removing bureaucratic barriers.

“Instead of taxing new housing, we should be working to make it easier and cheaper to build, increasing supply and helping more people achieve the dream of owning their own home,” he said.

Labor Defends Contribution Scheme

In response, Deputy Lord Mayor Declan Clausen defended the Affordable Housing Contributions Scheme, highlighting the benefits it would bring to the community. He argued that it ensures developers contribute fairly to public housing as they undertake projects across the city.

“Ensuring developers contribute their fair share will help address housing affordability and reduce living costs for those who need it most,” Cr Clausen said. “With the building boom in Newcastle, it’s essential that local communities benefit from these developments.”

Cr Clausen dismissed the opposition from the Newcastle Liberals, stating, “The fact that they’re the only ones against this initiative shows we’re heading in the right direction. This scheme will deliver upgraded public spaces and more affordable housing, helping Newcastle manage its growth responsibly.”

The debate over the housing tax is expected to be a major issue in the upcoming Council elections, with both parties presenting contrasting visions for tackling the city’s housing challenges.