NEARLY half the cost of a new house is gobbled up by a range of “hidden” taxes.

The taxes make up ­44 per cent of the price of a property, with the extra costs being blamed on a shortfall of new housing in Sydney.

“Most people are aware of things like stamp duty, but not the hidden taxes in housing,” said Stephen Kirchner, research fellow at the Centre for Independent Studies.

On a house worth $639,533 For house with a total dwelling cost of $639,533 Direct taxes GST- $49,392 Stamp duty- $24,228 Land tax- $1,457 Council rates- $345 Total- $75,422 Indirect taxes on resources: capital, labour and land Paid on direct inputs-$34,269 Paid on intermediate inputs- $51,911 Total — $86,180 Hidden and Ambiguous taxes Excessive infrastructure charge — $27,801 Zoning restrictions — $40,381 Planning delays and uncertainties — $38,094 Total — $106,276 Total tax component — $267,879 Untaxed resource component — $371,654 Total dwelling cost — $639,533

“The added tax can make the price unaffordable.”

Mr Kirchner said the tax burden was contributing to a dwelling supply shortfall in NSW, tipped to reach a deficit of 55,000 houses in 2014, according to QBE Insurance Group’s report Australian Housing Outlook 2013-2016.

A Centre for International Economics report found that taxes accounted for $267,879 of the average total dwelling cost of $639,533.

“Government taxes are forcing developers out of the market,” said Peter Icklow, CEO of developer Monarch Investments. “I’m selling house-and-land packages for $500,000 each and then paying the government $50,000 for each settlement.

“That’s after paying taxes all the way through the development process.”

Government taxes are forcing developers out of the market. I’m selling house-and-land packages for $500,000 each and then paying the government $50,000 for each settlement." Peter Icklow

Mr Icklow said the introduction of the GST on settlements had all but crippled many developers. In addition to the GST, the hidden taxes severely affected the viability of developments.

Glenn and Pai Ferguson recently bought in the Ingleburn Gardens Estate at Bardia, in Sydney’s southwest.

The affordability of a house and land there compared with their former suburb of Sutherland convinced them to move, but they were unaware that 44 per cent of the price was taxes.

“I had absolutely no idea,” Mr Ferguson said. “It’s definitely something that needs to be addressed. We need more affordable properties.”