September 30, 2015Housing Supply Media Centre News

Mini summit must tackle housing affordability

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.

ENDS