There are 11.2 million dwellings for 10.7 million households, but a third of households are renting.
A quarter of Australia’s property investments held by 1% of taxpayers.
Public policy should
- Adjust taxation to encourage “one dwelling each”.
- Huge numbers of apartments c an be created by redeveloping low-quality commercial sites in our major cities.
- Interest rates should not be the primary means of controlling inflation.
Tax changes
- Remove the Capital Gains Tax Discount for housing investments sold after a date six months into the future.
- Negative gearing and the CGT discount cost about $B170 / decade. The measures above save enough money to fund much more public housing and/or add dental items to Medicare.
SMSF changes
Separately Managed Super Funds should not be allowed to hold direct residential property.
Bad ideas
We oppose schemes that push up demand without increasing supply:
- “Letting” people use their super – which will force everyone to use up their Super and will push up property prices. 🔗
- “First Home Buyer” schemes – which just push up property prices. 🔗
Other References
- Who benefits from negative gearing (PDF, Australia Institute)
- IMF says scrap GGT discount
- The awful truth at the heart of Australian housing policy (Greg Jericho, Guardian)
