Media Release 1 October 2015
Peak body National Shelter calls on the mini summit to tackle housing affordability including putting reforms to negative gearing and capital gains tax exemptions, previously ruled out, back on the table.
Executive Officer Adrian Pisarski said “If Prime Minister Turnbull’s mini summit is intent on addressing reform then changing tax settings to reduce house price inflation must be among the issues to be addressed.”
We currently have a tax system which inflates the market by pitting investors against would be owner occupiers for the same properties but providing the wrong incentives around affordable housing according to National Shelter.
“Ultimately renters become the fall guy in house price inflation. Purchasers have low interest rates as a compensation, investors get tax relief, but rents have consistently outstripped inflation and renters have no compensating fallback.
"Housing is the largest single household cost and current settings push people to outer areas away from jobs, education and another opportunities. Low income households then face long commutes, expensive transport costs and experience social and economic exclusion.
"Tax reform can do more to counter the high cost of housing and must be coupled to a new affordable housing supply strategy to improve the economic and social participation of low income households and put a break on rising homelessness.
“If the mini summit is fair dinkum then reforming negative gearing and CGT exemptions must be back on the table despite the Abbott government having ruled them out.” Mr Pisarski concluded.
26 August 2015
Housing policy peak National Shelter will be at the National Reform Summit today to argue that housing tax reform and long term Commonwealth leadership on housing affordability are essential to achieving the aims of the Reform Summit.
National Shelter Executive Officer Adrian Pisarski will be there to live tweet the event with commentary on the housing measures necessary to achieve the reform agendas around productivity and living standards.
“Economies are made up of households and the single biggest factor in households thriving, or not, is housing availability and affordability,” Mr Pisarski said.
“National Shelter is seriously concerned that the Commonwealth Government has been signalling an exit from housing policy - a ludicrous situation when negative gearing and capital gains tax exemptions have such huge impacts on housing markets.
“We need a National Housing Strategy to underpin Australian productivity and living standards agendas.
“The ‘get a good job’ tactic doesn’t work if there is not a house to be had within commuting range of that job and Sydney and Melbourne don’t have sufficient jobs at that level.
“The Federal Government must be leaders in housing strategy, for the sake of both our economy and living standards.”
Follow @AdrianPisarski and @NationalShelter for live tweeting of the National Reform Summit.
The peak housing advocacy organisation for low income Australians, National Shelter, today expressed deep concern that neither major party has addressed the greatest cause of financial hardship for very many Australian households – the lack of affordable housing.
“We are half way through the election campaign, and despite repeated calls across the community, neither Labor nor the Coalition have offered any direct affordable housing policies”, said National Shelter Chair, Adam Farrar.“There have been two leaders’ debates; but a deafening silence on one of Australia’s largest policy challenges.”
“We have heard repeated talk of ‘cost of living pressures’ in this campaign. But housing is the largest item of expenditure in the budgets of all Australian households, and low income households pay a third more of their income on housing than high income earners.”
“With rents rising faster than incomes over the past decade, it is hard to take election talk of concern over living costs seriously without policies on housing affordability from either major party.”There is still time for the major parties to announce their housing polices.
National Shelter calls on the major parties to make the following five commitments that would make a real difference to low and moderate income Australians:
Less than a year ago National Shelter released its full housing policy priorities statement, 'Meeting housing challenges'. In that policy National Shelter encouraged all sides of politics to agree to address Australia’s housing challenges and to develop a National Housing Strategy.
At this point in the election campaign, it is time for the parties to take up that challenge.
For the full National Shelter priority statement: Meeting housing challenges (summary)
For more information:
Adam Farrar, Chairperson: 0409 669 936
National Shelter has welcomed the National Housing Supply Council’s report released today, revealing Australian’s unaffordable housing issue continues to grow.