Carbon Tax Repeal - Pricing Changes?

Given the recent legislation changes as a result of the successful repeal of the carbon tax, I wonder if any of the builders have actually passed on any savings to their customers. Has anyone seen an actual price reduction from their builders? Or have any of the list prices decreased?

My limited understanding of the legislation that passed actually gives the ACCC powers to investigate and fine any company that does not pass on any legitimate savings to their customers. We were led to believe that the carbon tax would increase the cost of a new build by between 1 and 2 per cent.

I was also interested in whether a builder would pass on savings to an already contracted customer? There certainly is a mechanism within my HIA contract that allows the builder to pass on the costs resultant from any Commonwealth government legislation change. Surely the reverse mechanism should apply?

Well actually it's the opposite.According to the meteorological science BBC Show
Operation Cloud Lab: Secrets of the Skies
What they have found in the air polluted US cities as they clean them up, the ground and water tempretures are increasing which is causing extreme increases in adverse weather conditions....building codes will have to increased and the cost of construction is going up all around the world.......

How much are you expecting?

As a manufacturer I did try to work it out.........

Really, my only input cost that I had any idea how much tax I paid was my power bill. No doubt there were varying degrees of tax paid on each and every one of my suppliers but how much??? I have no idea what so ever and even less of an idea how to work it out.

For a house builder I'd expect some reductions in concrete and bricks manufactured in Australia, along with any other energy intensive product. How much that is??? No idea what so ever! Also - does the producer get a refund for carbons paid for in existing stock or only new stock, if so, what happens to the old higher cost stock? Do they get stuck with it as nobody will want to pay a premium (even the devout greenies amongst us I'm sure if they are being honest) when you can buy the same thing for a cheaper rate.

Overall, unless you are a primary retail supplier (eg power company) any reduction will be minimal at best and probably nothing at all. That said, over time, normal market forces will bring margins down to whatever the normal level is and savings will be passed on one way or another.

So many variables with building a house and with all the buyer 'incentives' who knows what the actual base price is anyway?

The industry estimated it added 5-10k per new home build. The majority of costs would be in the raw materials, namely, steel, concrete, bricks roof tiles, aluminium frames and pavers.

The issue of inventory is interesting and I guess it depends on what the suppliers did on day 1 of the tax. If they benefitted by applying an increased cost on day 1, they should absorb the impost on existing inventory on this occasion. The law essentially suggests that if you ever increased prices due to the carbon tax, then this amount should be deducted from your current prices.

I agree that natural competition will bring prices into line. My point was that if a builder used the tax as a justification for increasing costs on pre existing contracts, then they should be doing the opposite now. I'm sure they won't. Whilst I'm unlikely to approach our builder, we agreed to a contract price in March this year. As the builder is yet to commence and will procure all of the materials under a regime where the tax doesn't exist, I can only assume their margin will improve.

I agree, I'm sure they use a random number generator at times.

I'm sure. That 1-2% ~ 5-10k will make a nice profit for most builders let alone manufactures. So I'm sure it will all get swallowed up.

I'd highly doubt your builder would ring you up to knock a few grand of your house just because of a repeal.