Meriton successor, grandson and current managing director Daniel Hendler and CEO Harry Triguboff.
High government taxes will have more of a negative effect on the real estate market than the failure of a single property developer such as Bathla Group, says Australia’s largest private developer Meriton.
Meriton says it believes the collapse of Sydney builder Bathla will affect the private credit market rather than the construction industry.
It says local buyers pay more than $300,000 in government charges when buying a unit, due to excessive federal and state government charges along with imposts from local councils.
The company, founded by richlister multi-billionaire Harry Triguboff, has developed more than 80 apartment towers on Queensland’s Gold Coast and in Sydney and is Australia’s largest private hotel owner.
“What we would say on the Bathla situation is that unfortunately this is another indictment on the terrible state that the property development industry is currently in, in NSW,” Mr Triguboff and co-Meriton managing director Daniel Hendler said in a joint statement.
“It is very sad for the purchasers, employees and everyone who will lose out of this.
Meriton MD Daniel Hendler, the successor to CEO Harry Triguboff. Picture: Jane Dempster/The Australian
“[But] until the federal and state governments start taking serious action on excessive taxes and charges, planning rules and building codes that add excessive cost and lending rules that are restricting buyers access to finance, then things will only get worse.
“Many builders have gone broke before Bathla and many builders will continue to go broke until the government takes action.”
Meriton says state and federal governments currently collect stamp duty, GST, company tax, a housing productivity contribution, Sydney Water charges, and council developer contributions.
With regard to Meriton staff, the government collects income tax and payroll tax, while there are also annual government charges levied at unit buyers, including council rates, land tax and water rates.
It says the state government collects the most taxes from each unit, followed by the federal government and then local councils.
Meriton says that on an average $1.m apartment in NSW, government charges will include $44,565 in stamp duty, $100,000 in GST, $75,000 in company tax, the Housing Productivity Contribution of $10,000, Sydney Water DSP charges of $3500, and council developer contributions of $20,000. On the employment front, it will pay an average income tax of $24,361 and $5687 in payroll tax. Council rates will cost $1400, land tax is $6000 and water rates are $720.
Foreign buyers will be slugged with higher government charges.
Meriton has just released the top 10 levels of its Cielo development in the Sydney suburb of Epping. The apartments, including one bedroom plus multi purpose room, two-bedders, and three and four-bedders along with large penthouses, overlook the Sydney CBD, Macquarie Park and surrounding parklands.