Productivity Commission Flags Resilience Ratings and Tax Exemption Changes for Climate Cost Savings

Australia's climate risks pose significant challenges to housing, and the Productivity Commission is pushing for a national database of climate hazards and a star rating system to help manage these costs. A resilience rating for Australian homes could prevent buyers from uninsurable properties, while ditching the fringe benefits tax exemption for electric cars has been flagged to reduce incentive overlap. However, clean transport advocates warn that this change could significantly slow down the adoption of electric vehicles.

Key Takeaways:

• The Productivity Commission recommends a national database of climate hazards to inform homebuyers about climate exposure and prevent overpayment.
• A star rating system for homes would help homebuyers make informed decisions about purchasing properties and could also influence insurance pricing with discounted premiums for owners who invest in adaptation.
• Recognizing homes as a significant share of household wealth, the Productivity Commission suggests developing guidance on affordable ways to make homes more resilient, such as replacing roofs with fire-resistant designs.
• The Fringe Benefits Tax exemption for electric cars has been flagged for elimination to reduce incentive overlap, but clean transport advocates warn this could "slam the brakes" on EV adoption.
• Electric Vehicle Council CEO Julie Delvecchio warned against dumping the tax exemptions for electric cars, emphasizing the need to support the transition to cleaner transport.
• Resilient Building Council CEO Kate Cotter noted that insurers and banks are already factoring climate risk into premiums, but help is needed to price-in the positive benefits of upgrades.

Statistics:

• No specific statistics are provided in the article.

Sources:

• "Productivity Commission flags electric vehicle tax exemption change"
• "Australian homes could be rated on climate risk"