The Master Builders Association says it cannot support the introduction of a carbon tax from July 1 unless cost impacts and uncertainties relating to building are properly addressed and compensated for.
Master Builders Australia chief executive Wilhelm Harnisch said the MBA's concerns stemmed from Centre of International Economics research, based on carbon price assumptions under the CPRS, indicated a likely cost increase of 5 per cent for the building and construction industry.
"The role of the building industry in helping reduce carbon emissions is recognised but what is not well understood is that the building industry is already playing a proactive role through increased mandatory efficiency stringency measures," Mr Harnisch said.
"These measures will see carbon emissions reduce over time and must be taken into account in the architecture of a market based response by Government.
"In other words, clients, investors and new home buyers are already paying for a lower carbon emissions future and from 1 July 2012 will be asked to pay even more."
Mr Harnisch warned the impact of the carbon tax would not be neutral and would come at a time when industry conditions would likely still be soft.
He said the industry had many carbon intensive inputs such as cement, steel, aluminium, glass and bricks, and he expected the carbon tax to increase the costs of all of those materials.
"Big business may well have to bear the initial cost of the carbon tax but these costs will be passed on to small businesses in the building and construction industry, which in turn will pass the costs on to investors and new homebuyers, thereby increasing rents and the cost of home ownership," Mr Harnisch said.
