The Housing Industry Association has warned state and federal leaders that increasing the GST on new housing could price many Australians out of home ownership.
As NSW Premier Mike Baird pitches raising the GST from 10 to 15 per cent to this week's leadership retreat with the prime minister, the housing industry body said new housing was already weighed down by tax.
"New housing is usually seen as an easy cash grab by governments." said HIA chief executive industry policy and media Graham Wolfe.
"Adding another five per cent in the GST on top of the price on a new home will put housing out of reach of many people that are trying desperately to get into the market."
Mr Wolfe asked leaders to exempt housing from any GST increases due to existing levies, taxes and charges on new homes and a growing need for housing stock spurred by population growth.
"Increasing the burden on home buyers should be a no-go area for governments if they are really concerned about housing affordability," he said.