Master Builders Association response to EC

VICTORIA will be the first Australian state to enter the brave new world of "electronic conveyancing", but not everyone is happy with the proposed online system for exchanging mortgage documents.

The Master Builders Association says the State Government is using the new system to increase conveyancing fees. This would further reduce housing affordability, as its building and construction members would pass the added costs to consumers.

According to an MBA submission, land transfer fees would remain the same for electronic conveyancing, but would rise by between 16 and 32 per cent for those who stick with paper.

MBA executive director Brian Welch said the Land Victoria increase was yet another weight on housing affordability.

"Those who stick with the paper trail system are going to be penalised," he said.

"We support the initiative … but it discriminates heavily against people who are not computer-based; who are not literate with these systems.

"The State Government finds taxation all too easy to increase and it impacts on housing once again."

Source The Age Natalie Craig 1 Oct 07

You would have thought a positive step was to reduce transfer fees on electronic conveyancing transactions. It sends a positive signal to promote uptake and second the productivity savings are built into the cost of the transaction. Anyhow transfer fees bear no relation to the cost of the transaction, as the MBA point out the transfer fee is a tax. The MBA response is also consistent with the view the government wants to see a return on their investment in EC. The government can charge whatever they like as they hold the monopoly. BH