Master Builders Australia is calling on the Federal Government to establish a special government-industry panel to examine in detail the impact of the proposed carbon tax on the building and construction industry.
According to the Treasury's forecasts, the carbon tax will reduce output in the construction sector by some 5.6 per cent by 2050, which was compared to 4.3 per cent predicted for mining and the 2.8 per cent expected for manufacturing.
Wilhelm Harnisch, CEO of Master Builders Australia said: "The proposed carbon tax will have a substantial, adverse impact on the building and construction sector."
He added: "The Federal Treasury's "Strong Growth, Low Pollution" report, which provided much of the modelling and forecasting support for the Government's carbon tax proposal gave extensive treatment to the impact of new tax on the energy and the transport sectors, but said little of its implications for the building and construction sector.
"The economic importance of the building and construction sector, which accounts for around 8 per cent of Australia's national output and more than 9 per cent of employment (or just over one million people, many of whom are small businesses) underscores the need for the special panel.
"Key terms of reference for the panel would include detailed modelling and forecasting of the impact of the proposed carbon tax on housing affordability, especially for first home buyers, for commercial construction, and for the small businesses who are the backbone of the sector.
"An effective transition package for the building and construction sector will reduce the adverse effects of the carbon tax particularly on first home buyers, on housing affordability, and on the hundreds of thousands of small businesses who are the backbone of the sector".
The HIA has also criticised the government on the tax, while the Green Building Council and Australian Institute of Architects have also called for measures to incentivise sustainable building.
In contrast, Archicentre has claimed the carbon tax debate is placing an immediate focus on housing design and energy saving products as people factor in the cost of running a home and using building products that are less energy intensive to produce.
While, according to Ray White Commercial, the carbon tax plan will boost demand for offices in sustainable buildings,.
Ray White Commercial has found that after 189 Kent Street in Sydney had a green retrofit, it has assisted their client reduce running costs and hold onto existing tenants for further lease terms
